Cloudflare Inc (NET)vsSonos Inc (SONO)
NET
Cloudflare Inc
$306.53
-1.49%
TECHNOLOGY · Cap: $109.15B
SONO
Sonos Inc
$15.12
+3.35%
TECHNOLOGY · Cap: $1.72B
Smart Verdict
WallStSmart Research — data-driven comparison
Cloudflare Inc generates 69% more annual revenue ($2.51B vs $1.49B). SONO leads profitability with a 3.8% profit margin vs -8.2%. SONO earns a higher WallStSmart Score of 48/100 (D+).
NET
Hold35
out of 100
Grade: F
SONO
Hold48
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-68.2%
Fair Value
$182.29
Current Price
$306.53
$124.24 premium
Margin of Safety
-31.9%
Fair Value
$12.51
Current Price
$15.12
$2.61 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 35.9% year-over-year
Large-cap with strong market position
Earnings expanding 87.5% YoY
Conservative balance sheet, low leverage
Areas to Watch
Expensive relative to growth rate
0.0% earnings growth
Weak financial health signals
Trading at 67.4x book value
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
ROE of 6.2% — below average capital efficiency
3.8% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : NET
The strongest argument for NET centers on Revenue Growth, Market Cap. Revenue growth of 35.9% demonstrates continued momentum.
Bull Case : SONO
The strongest argument for SONO centers on EPS Growth, Debt/Equity.
Bear Case : NET
The primary concerns for NET are PEG Ratio, EPS Growth, Piotroski F-Score. Debt-to-equity of 2.18 is elevated, increasing financial risk.
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
NET profiles as a hypergrowth 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.
NET is growing revenue faster at 35.9% — sustainability is the question.
NET generates stronger free cash flow (56M), providing more financial flexibility.
Bottom Line
SONO scores higher overall (48/100 vs 35/100). 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.
Cloudflare Inc
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
CloudFlare, Inc. operates a cloud platform that offers a range of network services to companies around the world. The company is headquartered in San Francisco, California.
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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