WallStSmart

Gen Digital Inc. (GEN)vsSonos Inc (SONO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Gen Digital Inc. generates 243% more annual revenue ($5.00B vs $1.46B). GEN leads profitability with a 19.5% profit margin vs 1.6%. GEN trades at a lower P/E of 15.5x. GEN earns a higher WallStSmart Score of 78/100 (B+).

GEN

Strong Buy

78

out of 100

Grade: B+

Growth: 8.7Profit: 9.0Value: 5.3Quality: 3.0
Piotroski: 4/9Altman Z: 0.80

SONO

Hold

45

out of 100

Grade: D+

Growth: 6.0Profit: 4.0Value: 3.0Quality: 7.0
Piotroski: 3/9Altman Z: 2.04
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GENSignificantly Overvalued (-37.0%)

Margin of Safety

-37.0%

Fair Value

$18.01

Current Price

$26.28

$8.27 premium

UndervaluedFair: $18.01Overvalued
SONOSignificantly Overvalued (-34.6%)

Margin of Safety

-34.6%

Fair Value

$12.26

Current Price

$15.08

$2.82 premium

UndervaluedFair: $12.26Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GEN5 strengths · Avg: 9.2/10
Return on EquityProfitability
37.3%10/10

Every $100 of equity generates 37 in profit

Operating MarginProfitability
63.4%10/10

Strong operational efficiency at 63.4%

EPS GrowthGrowth
265.2%10/10

Earnings expanding 265.2% YoY

P/E RatioValuation
15.5x8/10

Attractively priced relative to earnings

Revenue GrowthGrowth
27.0%8/10

Revenue surging 27.0% year-over-year

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

GEN2 concerns · Avg: 1.5/10
Altman Z-ScoreHealth
0.802/10

Distress zone — elevated risk

Debt/EquityHealth
3.161/10

Elevated debt levels

SONO4 concerns · Avg: 3.0/10
Market CapQuality
$1.83B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.2%3/10

ROE of 6.2% — below average capital efficiency

Profit MarginProfitability
1.6%3/10

1.6% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : GEN

The strongest argument for GEN centers on Return on Equity, Operating Margin, EPS Growth. Profitability is solid with margins at 19.5% and operating margin at 63.4%. Revenue growth of 27.0% demonstrates continued momentum.

Bull Case : SONO

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

Bear Case : GEN

The primary concerns for GEN are Altman Z-Score, Debt/Equity. Debt-to-equity of 3.16 is elevated, increasing financial risk.

Bear Case : SONO

The primary concerns for SONO are Market Cap, Return on Equity, Profit Margin. A P/E of 90.3x leaves little room for execution misses. Thin 1.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

GEN profiles as a growth stock while SONO is a value play — different risk/reward profiles.

SONO carries more volatility with a beta of 1.94 — expect wider price swings.

GEN is growing revenue faster at 27.0% — sustainability is the question.

GEN generates stronger free cash flow (476M), providing more financial flexibility.

Bottom Line

GEN scores higher overall (78/100 vs 45/100), backed by strong 19.5% margins and 27.0% revenue growth. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Gen Digital Inc.

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Gen Digital Inc. provides cybersecurity solutions for consumers in the United States, Canada, Latin America, Europe, the Middle East, Africa, Asia Pacific, and Japan. The company is headquartered in Tempe, Arizona.

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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