WallStSmart

Methode Electronics Inc (MEI)vsSonos Inc (SONO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sonos Inc generates 49% more annual revenue ($1.46B vs $978.20M). SONO leads profitability with a 1.6% profit margin vs -6.6%. MEI earns a higher WallStSmart Score of 46/100 (D+).

MEI

Hold

46

out of 100

Grade: D+

Growth: 2.0Profit: 2.0Value: 7.7Quality: 7.0
Piotroski: 4/9Altman Z: 2.27

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

MEIUndervalued (+56.4%)

Margin of Safety

+56.4%

Fair Value

$20.34

Current Price

$13.20

$7.14 discount

UndervaluedFair: $20.34Overvalued
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

MEI2 strengths · Avg: 9.0/10
Price/BookValuation
0.7x10/10

Reasonable price relative to book value

PEG RatioValuation
0.788/10

Growing faster than its price suggests

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

MEI4 concerns · Avg: 2.3/10
Market CapQuality
$402.84M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-9.5%2/10

ROE of -9.5% — below average capital efficiency

Revenue GrowthGrowth
-2.6%2/10

Revenue declined 2.6%

EPS GrowthGrowth
-96.6%2/10

Earnings declined 96.6%

SONO4 concerns · Avg: 3.0/10
Market CapQuality
$1.88B3/10

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 : MEI

The strongest argument for MEI centers on Price/Book, PEG Ratio. PEG of 0.78 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 : MEI

The primary concerns for MEI are Market Cap, Return on Equity, Revenue Growth.

Bear Case : SONO

The primary concerns for SONO are Market Cap, Return on Equity, Profit Margin. A P/E of 92.8x leaves little room for execution misses. Thin 1.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

MEI profiles as a turnaround 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.

SONO is growing revenue faster at 8.4% — sustainability is the question.

MEI generates stronger free cash flow (10M), providing more financial flexibility.

Bottom Line

MEI scores higher overall (46/100 vs 45/100). Both earn "Hold" 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.

Methode Electronics Inc

TECHNOLOGY · ELECTRONIC COMPONENTS · USA

Methode Electronics, Inc. designs, manufactures and markets component devices and subsystems globally. The company is headquartered in Chicago, Illinois.

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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