WallStSmart

Cognyte Software Ltd (CGNT)vsSonos Inc (SONO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sonos Inc generates 264% more annual revenue ($1.49B vs $409.99M). SONO leads profitability with a 3.8% profit margin vs -0.7%. SONO earns a higher WallStSmart Score of 51/100 (C-).

CGNT

Avoid

34

out of 100

Grade: F

Growth: 4.7Profit: 3.0Value: 4.7Quality: 6.0
Piotroski: 5/9Altman Z: 1.06

SONO

Buy

51

out of 100

Grade: C-

Growth: 6.0Profit: 5.0Value: 3.7Quality: 7.0
Piotroski: 3/9Altman Z: 2.04
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CGNTOvervalued (-5.4%)

Margin of Safety

-5.4%

Fair Value

$6.83

Current Price

$9.30

$2.47 premium

UndervaluedFair: $6.83Overvalued
SONOSignificantly Overvalued (-31.5%)

Margin of Safety

-31.5%

Fair Value

$12.55

Current Price

$15.77

$3.22 premium

UndervaluedFair: $12.55Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CGNT1 strengths · Avg: 9.0/10
Debt/EquityHealth
0.199/10

Conservative balance sheet, low leverage

SONO2 strengths · Avg: 9.5/10
EPS GrowthGrowth
87.5%10/10

Earnings expanding 87.5% YoY

Debt/EquityHealth
0.159/10

Conservative balance sheet, low leverage

Areas to Watch

CGNT4 concerns · Avg: 2.5/10
Market CapQuality
$603.65M3/10

Smaller company, higher risk/reward

Operating MarginProfitability
4.2%3/10

Operating margin of 4.2%

Return on EquityProfitability
-1.4%2/10

ROE of -1.4% — below average capital efficiency

EPS GrowthGrowth
-74.8%2/10

Earnings declined 74.8%

SONO4 concerns · Avg: 3.3/10
P/E RatioValuation
32.6x4/10

Premium valuation, high expectations priced in

Market CapQuality
$1.73B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.2%3/10

ROE of 6.2% — below average capital efficiency

Profit MarginProfitability
3.8%3/10

3.8% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : CGNT

The strongest argument for CGNT centers on Debt/Equity. Revenue growth of 10.4% demonstrates continued momentum.

Bull Case : SONO

The strongest argument for SONO centers on EPS Growth, Debt/Equity.

Bear Case : CGNT

The primary concerns for CGNT are Market Cap, Operating Margin, Return on Equity.

Bear Case : SONO

The primary concerns for SONO are P/E Ratio, Market Cap, Return on Equity. Thin 3.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

CGNT profiles as a turnaround stock while SONO is a value play — different risk/reward profiles.

SONO carries more volatility with a beta of 1.96 — expect wider price swings.

CGNT is growing revenue faster at 10.4% — sustainability is the question.

CGNT generates stronger free cash flow (-6M), providing more financial flexibility.

Bottom Line

SONO scores higher overall (51/100 vs 34/100). Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Cognyte Software Ltd

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Cognyte Software Ltd. provides security analysis software to governments and companies around the world. The company is headquartered in Herzliya, Israel.

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Sonos Inc

TECHNOLOGY · CONSUMER ELECTRONICS · USA

Sonos, Inc. designs, develops, manufactures, and sells multi-room audio products in the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company is headquartered in Santa Barbara, California.

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