WallStSmart

Qualys Inc (QLYS)vsSonos Inc (SONO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sonos Inc generates 112% more annual revenue ($1.49B vs $702.98M). QLYS leads profitability with a 29.4% profit margin vs 3.8%. QLYS trades at a lower P/E of 29.5x. QLYS earns a higher WallStSmart Score of 64/100 (C+).

QLYS

Buy

64

out of 100

Grade: C+

Growth: 7.3Profit: 9.5Value: 4.3Quality: 6.5
Piotroski: 5/9Altman Z: 1.98

SONO

Hold

48

out of 100

Grade: D+

Growth: 6.0Profit: 4.5Value: 3.7Quality: 7.0
Piotroski: 3/9Altman Z: 2.04
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for QLYS.

SONOSignificantly Overvalued (-31.9%)

Margin of Safety

-31.9%

Fair Value

$12.51

Current Price

$15.12

$2.61 premium

UndervaluedFair: $12.51Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

QLYS4 strengths · Avg: 9.8/10
Return on EquityProfitability
35.4%10/10

Every $100 of equity generates 35 in profit

Operating MarginProfitability
34.0%10/10

Strong operational efficiency at 34.0%

Debt/EquityHealth
0.0910/10

Conservative balance sheet, low leverage

Profit MarginProfitability
29.4%9/10

Keeps 29 of every $100 in revenue as profit

SONO2 strengths · Avg: 9.5/10
EPS GrowthGrowth
87.5%10/10

Earnings expanding 87.5% YoY

Debt/EquityHealth
0.129/10

Conservative balance sheet, low leverage

Areas to Watch

QLYS4 concerns · Avg: 3.5/10
P/E RatioValuation
29.5x4/10

Moderate valuation

Price/BookValuation
9.3x4/10

Trading at 9.3x book value

Altman Z-ScoreHealth
1.984/10

Grey zone — moderate risk

PEG RatioValuation
2.952/10

Expensive relative to growth rate

SONO4 concerns · Avg: 3.3/10
P/E RatioValuation
32.3x4/10

Premium valuation, high expectations priced in

Market CapQuality
$1.72B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.2%3/10

ROE of 6.2% — below average capital efficiency

Profit MarginProfitability
3.8%3/10

3.8% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : QLYS

The strongest argument for QLYS centers on Return on Equity, Operating Margin, Debt/Equity. Profitability is solid with margins at 29.4% and operating margin at 34.0%. Revenue growth of 11.0% demonstrates continued momentum.

Bull Case : SONO

The strongest argument for SONO centers on EPS Growth, Debt/Equity.

Bear Case : QLYS

The primary concerns for QLYS are P/E Ratio, Price/Book, Altman Z-Score.

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

QLYS profiles as a mature 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.

QLYS is growing revenue faster at 11.0% — sustainability is the question.

QLYS generates stronger free cash flow (56M), providing more financial flexibility.

Bottom Line

QLYS scores higher overall (64/100 vs 48/100), backed by strong 29.4% margins and 11.0% 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.

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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