WallStSmart

Manhattan Associates Inc (MANH)vsSonos Inc (SONO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sonos Inc generates 32% more annual revenue ($1.49B vs $1.13B). MANH leads profitability with a 18.7% profit margin vs 3.8%. SONO trades at a lower P/E of 32.3x. MANH earns a higher WallStSmart Score of 53/100 (C-).

MANH

Buy

53

out of 100

Grade: C-

Growth: 5.3Profit: 9.5Value: 2.0Quality: 6.5
Piotroski: 4/9Altman Z: 3.53

SONO

Hold

48

out of 100

Grade: D+

Growth: 6.0Profit: 4.5Value: 3.7Quality: 7.0
Piotroski: 3/9Altman Z: 2.04
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MANHSignificantly Overvalued (-19.8%)

Margin of Safety

-19.8%

Fair Value

$119.08

Current Price

$201.82

$82.74 premium

UndervaluedFair: $119.08Overvalued
SONOSignificantly Overvalued (-31.9%)

Margin of Safety

-31.9%

Fair Value

$12.51

Current Price

$15.12

$2.61 premium

UndervaluedFair: $12.51Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MANH3 strengths · Avg: 9.3/10
Return on EquityProfitability
133.5%10/10

Every $100 of equity generates 133 in profit

Altman Z-ScoreHealth
3.5310/10

Safe zone — low bankruptcy risk

Operating MarginProfitability
25.0%8/10

Strong operational efficiency at 25.0%

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

Earnings expanding 87.5% YoY

Debt/EquityHealth
0.129/10

Conservative balance sheet, low leverage

Areas to Watch

MANH4 concerns · Avg: 2.0/10
PEG RatioValuation
2.572/10

Expensive relative to growth rate

P/E RatioValuation
59.8x2/10

Premium valuation, high expectations priced in

Price/BookValuation
74.7x2/10

Trading at 74.7x book value

EPS GrowthGrowth
-8.6%2/10

Earnings declined 8.6%

SONO4 concerns · Avg: 3.3/10
P/E RatioValuation
32.3x4/10

Premium valuation, high expectations priced in

Market CapQuality
$1.72B3/10

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 : MANH

The strongest argument for MANH centers on Return on Equity, Altman Z-Score, Operating Margin. Profitability is solid with margins at 18.7% and operating margin at 25.0%.

Bull Case : SONO

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

Bear Case : MANH

The primary concerns for MANH are PEG Ratio, P/E Ratio, Price/Book. A P/E of 59.8x leaves little room for execution misses.

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

MANH profiles as a mature 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.

MANH is growing revenue faster at 9.3% — sustainability is the question.

MANH generates stronger free cash flow (90M), providing more financial flexibility.

Bottom Line

MANH scores higher overall (53/100 vs 48/100), backed by strong 18.7% margins. Both earn "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.

Manhattan Associates Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Manhattan Associates, Inc. develops, sells, implements, services, and maintains software solutions to manage supply chains, inventory, and omnichannel operations for retailers, wholesalers, manufacturers, logistics providers, and other organizations. The company is headquartered in Atlanta, Georgia.

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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