WallStSmart

Semtech Corporation (SMTC)vsSonos Inc (SONO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sonos Inc generates 37% more annual revenue ($1.44B vs $1.05B). SONO leads profitability with a -1.2% profit margin vs -3.9%. SONO earns a higher WallStSmart Score of 42/100 (D).

SMTC

Avoid

33

out of 100

Grade: F

Growth: 5.3Profit: 4.0Value: 4.3Quality: 5.8
Piotroski: 5/9Altman Z: 1.29

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

SMTCSignificantly Overvalued (-69.6%)

Margin of Safety

-69.6%

Fair Value

$52.21

Current Price

$119.19

$66.98 premium

UndervaluedFair: $52.21Overvalued
SONOUndervalued (+42.0%)

Margin of Safety

+42.0%

Fair Value

$28.47

Current Price

$14.76

$13.71 discount

UndervaluedFair: $28.47Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SMTC0 strengths · Avg: 0/10

No standout strengths identified

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

Earnings expanding 87.5% YoY

Areas to Watch

SMTC4 concerns · Avg: 2.0/10
Price/BookValuation
20.1x2/10

Trading at 20.1x book value

Return on EquityProfitability
-7.4%2/10

ROE of -7.4% — below average capital efficiency

EPS GrowthGrowth
-32.7%2/10

Earnings declined 32.7%

Altman Z-ScoreHealth
1.292/10

Distress zone — elevated risk

SONO4 concerns · Avg: 2.3/10
Market CapQuality
$1.79B3/10

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%

Free Cash FlowQuality
$-169.26M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : SMTC

PEG of 1.21 suggests the stock is reasonably priced for its growth.

Bull Case : SONO

The strongest argument for SONO centers on EPS Growth.

Bear Case : SMTC

The primary concerns for SMTC are Price/Book, Return on Equity, EPS Growth.

Bear Case : SONO

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

Key Dynamics to Monitor

SMTC carries more volatility with a beta of 2.06 — expect wider price swings.

SMTC is growing revenue faster at 9.3% — sustainability is the question.

SMTC generates stronger free cash flow (47M), providing more financial flexibility.

Monitor SEMICONDUCTORS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

SONO scores higher overall (42/100 vs 33/100). Both earn "Hold" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Semtech Corporation

TECHNOLOGY · SEMICONDUCTORS · USA

Semtech Corporation designs, develops, manufactures, and markets mixed-signal and analog semiconductor products and advanced algorithms. The company is headquartered in Camarillo, 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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