WallStSmart

Sonos Inc (SONO)vsTeradata Corp (TDC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Teradata Corp generates 13% more annual revenue ($1.69B vs $1.49B). TDC leads profitability with a 24.9% profit margin vs 3.8%. TDC trades at a lower P/E of 7.1x. TDC earns a higher WallStSmart Score of 67/100 (B-).

SONO

Buy

51

out of 100

Grade: C-

Growth: 6.0Profit: 5.0Value: 3.7Quality: 7.0
Piotroski: 3/9Altman Z: 2.04

TDC

Strong Buy

67

out of 100

Grade: B-

Growth: 6.0Profit: 8.0Value: 4.7Quality: 4.5
Piotroski: 5/9Altman Z: -0.21
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SONOSignificantly Overvalued (-31.5%)

Margin of Safety

-31.5%

Fair Value

$12.55

Current Price

$15.64

$3.09 premium

UndervaluedFair: $12.55Overvalued
TDCSignificantly Overvalued (-46.7%)

Margin of Safety

-46.7%

Fair Value

$25.82

Current Price

$27.39

$1.57 premium

UndervaluedFair: $25.82Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

TDC4 strengths · Avg: 9.8/10
P/E RatioValuation
7.1x10/10

Attractively priced relative to earnings

Return on EquityProfitability
75.6%10/10

Every $100 of equity generates 76 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: 3.3/10
P/E RatioValuation
32.6x4/10

Premium valuation, high expectations priced in

Market CapQuality
$1.73B3/10

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

TDC2 concerns · Avg: 2.0/10
PEG RatioValuation
3.352/10

Expensive relative to growth rate

Altman Z-ScoreHealth
-0.212/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : SONO

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

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 19.1%.

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.

Bear Case : TDC

The primary concerns for TDC are 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 1.96 — expect wider price swings.

SONO is growing revenue faster at 8.8% — sustainability is the question.

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

Bottom Line

TDC scores higher overall (67/100 vs 51/100), backed by strong 24.9% margins. Both earn "Strong Buy" and "Buy" 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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