Sonos Inc (SONO)vsStoneCo Ltd (STNE)
SONO
Sonos Inc
$16.33
-2.62%
TECHNOLOGY · Cap: $2.07B
STNE
StoneCo Ltd
$7.49
-2.60%
TECHNOLOGY · Cap: $1.79B
Smart Verdict
WallStSmart Research — data-driven comparison
StoneCo Ltd generates 812% more annual revenue ($13.59B vs $1.49B). STNE leads profitability with a 24.7% profit margin vs 3.8%. STNE trades at a lower P/E of 3.0x. STNE earns a higher WallStSmart Score of 66/100 (B-).
SONO
Hold47
out of 100
Grade: D+
STNE
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-32.2%
Fair Value
$12.48
Current Price
$16.33
$3.85 premium
Margin of Safety
+79.2%
Fair Value
$85.05
Current Price
$7.49
$77.56 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 87.5% YoY
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 39.6%
Every $100 of equity generates 28 in profit
Keeps 25 of every $100 in revenue as profit
Generating 1.7B in free cash flow
Areas to Watch
Premium valuation, high expectations priced in
ROE of 6.2% — below average capital efficiency
3.8% margin — thin
Operating margin of 4.4%
1.6% revenue growth
Smaller company, higher risk/reward
Elevated debt levels
Earnings declined 16.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : SONO
The strongest argument for SONO centers on EPS Growth, Debt/Equity.
Bull Case : STNE
The strongest argument for STNE centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 24.7% and operating margin at 39.6%.
Bear Case : SONO
The primary concerns for SONO are P/E Ratio, Return on Equity, Profit Margin. Thin 3.8% margins leave little buffer for downturns.
Bear Case : STNE
The primary concerns for STNE are Revenue Growth, Market Cap, Debt/Equity. Debt-to-equity of 1.81 is elevated, increasing financial risk.
Key Dynamics to Monitor
SONO carries more volatility with a beta of 1.88 — expect wider price swings.
SONO is growing revenue faster at 8.8% — sustainability is the question.
STNE generates stronger free cash flow (1.7B), providing more financial flexibility.
Monitor CONSUMER ELECTRONICS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
STNE scores higher overall (66/100 vs 47/100), backed by strong 24.7% margins. 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.
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.
StoneCo Ltd
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
StoneCo Ltd. provides fintech solutions to merchants and integrated partners to conduct e-commerce through store, online and mobile channels in Brazil.
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