WallStSmart

Okta Inc (OKTA)vsSonos Inc (SONO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Okta Inc generates 105% more annual revenue ($3.00B vs $1.46B). OKTA leads profitability with a 8.2% profit margin vs 1.6%. OKTA trades at a lower P/E of 84.3x. OKTA earns a higher WallStSmart Score of 56/100 (C).

OKTA

Buy

56

out of 100

Grade: C

Growth: 7.3Profit: 5.0Value: 6.0Quality: 6.5
Piotroski: 5/9Altman Z: 1.65

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

OKTAUndervalued (+52.9%)

Margin of Safety

+52.9%

Fair Value

$187.20

Current Price

$118.72

$68.48 discount

UndervaluedFair: $187.20Overvalued
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

OKTA2 strengths · Avg: 9.0/10
Debt/EquityHealth
0.0610/10

Conservative balance sheet, low leverage

EPS GrowthGrowth
21.2%8/10

Earnings expanding 21.2% YoY

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

OKTA3 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.654/10

Distress zone — elevated risk

Return on EquityProfitability
3.6%3/10

ROE of 3.6% — below average capital efficiency

P/E RatioValuation
84.3x2/10

Premium valuation, high expectations priced in

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 : OKTA

The strongest argument for OKTA centers on Debt/Equity, EPS Growth. Revenue growth of 11.2% demonstrates continued momentum. PEG of 1.10 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 : OKTA

The primary concerns for OKTA are Altman Z-Score, Return on Equity, P/E Ratio. A P/E of 84.3x leaves little room for execution misses.

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

SONO carries more volatility with a beta of 1.94 — expect wider price swings.

OKTA is growing revenue faster at 11.2% — sustainability is the question.

OKTA generates stronger free cash flow (276M), providing more financial flexibility.

Monitor SOFTWARE - INFRASTRUCTURE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

OKTA scores higher overall (56/100 vs 45/100) and 11.2% revenue growth. 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.

Okta Inc

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Okta Inc. is a leading provider in the identity and access management sector, specializing in advanced authentication solutions that bolster both digital security and user experience for enterprises. Its extensive offerings, which include single sign-on, multi-factor authentication, and identity lifecycle management, enable organizations to effectively manage user identities across complex hybrid IT environments. Renowned for its innovation and commitment to exceptional customer service, Okta is strategically positioned for sustained growth in the expanding cybersecurity landscape, making it an essential partner for businesses undertaking digital transformation initiatives.

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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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