WallStSmart

Sonos Inc (SONO)vsTeradata Corp (TDC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Teradata Corp generates 16% more annual revenue ($1.69B vs $1.46B). TDC leads profitability with a 24.9% profit margin vs 1.6%. TDC trades at a lower P/E of 6.8x. TDC earns a higher WallStSmart Score of 61/100 (C+).

SONO

Hold

45

out of 100

Grade: D+

Growth: 6.0Profit: 4.0Value: 5.7Quality: 5.0

TDC

Buy

61

out of 100

Grade: C+

Growth: 6.0Profit: 6.5Value: 6.0Quality: 3.8
Piotroski: 5/9Altman Z: -0.33
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SONOUndervalued (+43.7%)

Margin of Safety

+43.7%

Fair Value

$29.31

Current Price

$15.06

$14.25 discount

UndervaluedFair: $29.31Overvalued
TDCUndervalued (+0.9%)

Margin of Safety

+0.9%

Fair Value

$38.23

Current Price

$31.59

$6.64 discount

UndervaluedFair: $38.23Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

Earnings expanding 87.5% YoY

TDC4 strengths · Avg: 9.8/10
P/E RatioValuation
6.8x10/10

Attractively priced relative to earnings

Return on EquityProfitability
117.8%10/10

Every $100 of equity generates 118 in profit

EPS GrowthGrowth
671.0%10/10

Earnings expanding 671.0% YoY

Profit MarginProfitability
24.9%9/10

Keeps 25 of every $100 in revenue as profit

Areas to Watch

SONO4 concerns · Avg: 2.8/10
Market CapQuality
$1.77B3/10

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

P/E RatioValuation
87.6x2/10

Premium valuation, high expectations priced in

TDC4 concerns · Avg: 2.3/10
Price/BookValuation
12.7x4/10

Trading at 12.7x book value

PEG RatioValuation
6.002/10

Expensive relative to growth rate

Altman Z-ScoreHealth
-0.332/10

Distress zone — elevated risk

Operating MarginProfitability
-7.4%1/10

Operating margin of -7.4%

Comparative Analysis Report

WallStSmart Research

Bull Case : SONO

The strongest argument for SONO centers on EPS Growth.

Bull Case : TDC

The strongest argument for TDC centers on P/E Ratio, Return on Equity, EPS Growth. Profitability is solid with margins at 24.9% and operating margin at -7.4%.

Bear Case : SONO

The primary concerns for SONO are Market Cap, Return on Equity, Profit Margin. A P/E of 87.6x leaves little room for execution misses. Thin 1.6% margins leave little buffer for downturns.

Bear Case : TDC

The primary concerns for TDC are Price/Book, PEG Ratio, Altman Z-Score.

Key Dynamics to Monitor

SONO profiles as a value stock while TDC is a mature play — different risk/reward profiles.

SONO carries more volatility with a beta of 1.94 — expect wider price swings.

SONO is growing revenue faster at 8.4% — sustainability is the question.

TDC generates stronger free cash flow (390M), providing more financial flexibility.

Bottom Line

TDC scores higher overall (61/100 vs 45/100), backed by strong 24.9% margins. SONO offers better value entry with a 43.7% margin of safety. 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.

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.

Teradata Corp

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Teradata Corporation is a provider of hybrid cloud analytics software. The company is headquartered in San Diego, California.

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