Cloudflare Inc (NET)vsSonos Inc (SONO)
NET
Cloudflare Inc
$283.22
+4.81%
TECHNOLOGY · Cap: $95.47B
SONO
Sonos Inc
$14.43
-17.64%
TECHNOLOGY · Cap: $1.81B
Smart Verdict
WallStSmart Research — data-driven comparison
Cloudflare Inc generates 60% more annual revenue ($2.33B vs $1.46B). SONO leads profitability with a 1.6% profit margin vs -3.7%. SONO earns a higher WallStSmart Score of 45/100 (D+).
NET
Hold35
out of 100
Grade: F
SONO
Hold45
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-56.1%
Fair Value
$167.92
Current Price
$283.22
$115.30 premium
Margin of Safety
-35.3%
Fair Value
$12.20
Current Price
$14.43
$2.23 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 33.5% 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 65.6x book value
Smaller company, higher risk/reward
ROE of 6.2% — below average capital efficiency
1.6% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : NET
The strongest argument for NET centers on Revenue Growth, Market Cap. Revenue growth of 33.5% 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 2.31 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 89.4x leaves little room for execution misses. Thin 1.6% 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 1.96 — expect wider price swings.
NET is growing revenue faster at 33.5% — sustainability is the question.
NET generates stronger free cash flow (84M), providing more financial flexibility.
Bottom Line
SONO scores higher overall (45/100 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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