WallStSmart

Semtech Corporation (SMTC)vsSonos Inc (SONO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sonos Inc generates 34% more annual revenue ($1.46B vs $1.09B). SONO leads profitability with a 1.6% profit margin vs -3.0%. SONO earns a higher WallStSmart Score of 45/100 (D+).

SMTC

Hold

37

out of 100

Grade: F

Growth: 8.0Profit: 4.0Value: 4.0Quality: 6.5
Piotroski: 6/9Altman Z: 1.06

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

Intrinsic value data unavailable for SMTC.

SONOSignificantly Overvalued (-34.7%)

Margin of Safety

-34.7%

Fair Value

$12.25

Current Price

$15.08

$2.83 premium

UndervaluedFair: $12.25Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SMTC2 strengths · Avg: 8.0/10
Revenue GrowthGrowth
15.9%8/10

15.9% revenue growth

EPS GrowthGrowth
22.7%8/10

Earnings expanding 22.7% 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

SMTC4 concerns · Avg: 2.0/10
PEG RatioValuation
3.392/10

Expensive relative to growth rate

Price/BookValuation
27.5x2/10

Trading at 27.5x book value

Return on EquityProfitability
-5.8%2/10

ROE of -5.8% — below average capital efficiency

Altman Z-ScoreHealth
1.062/10

Distress zone — elevated risk

SONO4 concerns · Avg: 3.0/10
Market CapQuality
$1.83B3/10

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 : SMTC

The strongest argument for SMTC centers on Revenue Growth, EPS Growth. Revenue growth of 15.9% demonstrates continued momentum.

Bull Case : SONO

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

Bear Case : SMTC

The primary concerns for SMTC are PEG Ratio, Price/Book, Return on Equity.

Bear Case : SONO

The primary concerns for SONO are Market Cap, Return on Equity, Profit Margin. A P/E of 90.3x leaves little room for execution misses. Thin 1.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

SMTC profiles as a growth stock while SONO is a value play — different risk/reward profiles.

SMTC carries more volatility with a beta of 2.32 — expect wider price swings.

SMTC is growing revenue faster at 15.9% — sustainability is the question.

SMTC generates stronger free cash flow (28M), providing more financial flexibility.

Bottom Line

SONO scores higher overall (45/100 vs 37/100). 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.

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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