Gen Digital Inc. (GEN)vsSonos Inc (SONO)
GEN
Gen Digital Inc.
$24.35
+0.41%
TECHNOLOGY · Cap: $14.46B
SONO
Sonos Inc
$17.75
-0.67%
TECHNOLOGY · Cap: $2.05B
Smart Verdict
WallStSmart Research — data-driven comparison
Gen Digital Inc. generates 241% more annual revenue ($5.08B vs $1.49B). GEN leads profitability with a 20.7% profit margin vs 3.8%. GEN trades at a lower P/E of 14.1x. GEN earns a higher WallStSmart Score of 76/100 (B+).
GEN
Strong Buy76
out of 100
Grade: B+
SONO
Hold47
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-32.3%
Fair Value
$18.65
Current Price
$24.35
$5.70 premium
Margin of Safety
-32.2%
Fair Value
$12.48
Current Price
$17.75
$5.27 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 40 in profit
Strong operational efficiency at 35.5%
Earnings expanding 64.0% YoY
Keeps 21 of every $100 in revenue as profit
Attractively priced relative to earnings
Earnings expanding 87.5% YoY
Conservative balance sheet, low leverage
Areas to Watch
Distress zone — elevated risk
Elevated debt levels
Premium valuation, high expectations priced in
ROE of 6.2% — below average capital efficiency
3.8% margin — thin
Operating margin of 4.4%
Comparative Analysis Report
WallStSmart ResearchBull Case : GEN
The strongest argument for GEN centers on Return on Equity, Operating Margin, EPS Growth. Profitability is solid with margins at 20.7% and operating margin at 35.5%. PEG of 1.38 suggests the stock is reasonably priced for its growth.
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 3.08 is elevated, increasing financial risk.
Bear Case : SONO
The primary concerns for SONO are P/E Ratio, Return on Equity, Profit Margin. Thin 3.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
GEN profiles as a mature stock while SONO is a value play — different risk/reward profiles.
SONO carries more volatility with a beta of 1.88 — expect wider price swings.
SONO is growing revenue faster at 8.8% — sustainability is the question.
GEN generates stronger free cash flow (430M), providing more financial flexibility.
Bottom Line
GEN scores higher overall (76/100 vs 47/100), backed by strong 20.7% margins. 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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