WallStSmart

Qualys Inc (QLYS)vsSonos Inc (SONO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sonos Inc generates 115% more annual revenue ($1.44B vs $669.13M). QLYS leads profitability with a 29.6% profit margin vs -1.2%. QLYS earns a higher WallStSmart Score of 66/100 (B-).

QLYS

Strong Buy

66

out of 100

Grade: B-

Growth: 7.3Profit: 9.5Value: 4.0Quality: 5.3
Piotroski: 3/9Altman Z: 2.02

SONO

Hold

42

out of 100

Grade: D

Growth: 4.7Profit: 4.0Value: 6.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

QLYSSignificantly Overvalued (-25.6%)

Margin of Safety

-25.6%

Fair Value

$87.79

Current Price

$89.60

$1.81 premium

UndervaluedFair: $87.79Overvalued
SONOUndervalued (+42.1%)

Margin of Safety

+42.1%

Fair Value

$28.49

Current Price

$14.67

$13.82 discount

UndervaluedFair: $28.49Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

QLYS5 strengths · Avg: 9.0/10
Return on EquityProfitability
38.2%10/10

Every $100 of equity generates 38 in profit

Operating MarginProfitability
33.6%10/10

Strong operational efficiency at 33.6%

Profit MarginProfitability
29.6%9/10

Keeps 30 of every $100 in revenue as profit

P/E RatioValuation
15.5x8/10

Attractively priced relative to earnings

EPS GrowthGrowth
23.6%8/10

Earnings expanding 23.6% YoY

SONO1 strengths · Avg: 10.0/10
EPS GrowthGrowth
87.5%10/10

Earnings expanding 87.5% YoY

Areas to Watch

QLYS2 concerns · Avg: 2.5/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.922/10

Expensive relative to growth rate

SONO4 concerns · Avg: 2.0/10
Market CapQuality
$1.77B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-3.9%2/10

ROE of -3.9% — below average capital efficiency

Revenue GrowthGrowth
-0.9%2/10

Revenue declined 0.9%

Profit MarginProfitability
-1.2%1/10

Currently unprofitable

Comparative Analysis Report

WallStSmart Research

Bull Case : QLYS

The strongest argument for QLYS centers on Return on Equity, Operating Margin, Profit Margin. Profitability is solid with margins at 29.6% and operating margin at 33.6%. Revenue growth of 10.1% demonstrates continued momentum.

Bull Case : SONO

The strongest argument for SONO centers on EPS Growth.

Bear Case : QLYS

The primary concerns for QLYS are Piotroski F-Score, PEG Ratio.

Bear Case : SONO

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

Key Dynamics to Monitor

QLYS profiles as a mature stock while SONO is a turnaround play — different risk/reward profiles.

SONO carries more volatility with a beta of 2.00 — expect wider price swings.

QLYS is growing revenue faster at 10.1% — sustainability is the question.

SONO generates stronger free cash flow (157M), providing more financial flexibility.

Bottom Line

QLYS scores higher overall (66/100 vs 42/100), backed by strong 29.6% margins and 10.1% revenue growth. SONO offers better value entry with a 42.1% margin of safety. Both earn "Strong 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.

Qualys Inc

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Qualys, Inc. provides cloud-based information technology (IT), security, and compliance solutions in the United States and internationally. The company is headquartered in Foster City, 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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