WallStSmart

Sonos Inc (SONO)vsTeradyne Inc (TER)

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Smart Verdict

WallStSmart Research — data-driven comparison

Teradyne Inc generates 236% more annual revenue ($5.00B vs $1.49B). TER leads profitability with a 27.5% profit margin vs 3.8%. TER trades at a lower P/E of 31.5x. TER earns a higher WallStSmart Score of 79/100 (B+).

SONO

Hold

47

out of 100

Grade: D+

Growth: 6.0Profit: 4.5Value: 3.7Quality: 7.0
Piotroski: 3/9Altman Z: 2.04

TER

Strong Buy

79

out of 100

Grade: B+

Growth: 8.0Profit: 10.0Value: 6.3Quality: 8.0
Piotroski: 3/9Altman Z: 3.02
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SONOSignificantly Overvalued (-32.2%)

Margin of Safety

-32.2%

Fair Value

$12.48

Current Price

$16.41

$3.93 premium

UndervaluedFair: $12.48Overvalued

Intrinsic value data unavailable for TER.

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
0.129/10

Conservative balance sheet, low leverage

TER6 strengths · Avg: 10.0/10
PEG RatioValuation
0.4610/10

Growing faster than its price suggests

Return on EquityProfitability
33.5%10/10

Every $100 of equity generates 33 in profit

Operating MarginProfitability
30.9%10/10

Strong operational efficiency at 30.9%

Revenue GrowthGrowth
69.8%10/10

Revenue surging 69.8% year-over-year

EPS GrowthGrowth
189.3%10/10

Earnings expanding 189.3% YoY

Debt/EquityHealth
0.0310/10

Conservative balance sheet, low leverage

Areas to Watch

SONO4 concerns · Avg: 3.3/10
P/E RatioValuation
38.8x4/10

Premium valuation, high expectations priced in

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

Operating MarginProfitability
4.4%3/10

Operating margin of 4.4%

TER3 concerns · Avg: 3.7/10
P/E RatioValuation
31.5x4/10

Premium valuation, high expectations priced in

Price/BookValuation
9.0x4/10

Trading at 9.0x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : SONO

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

Bull Case : TER

The strongest argument for TER centers on PEG Ratio, Return on Equity, Operating Margin. Profitability is solid with margins at 27.5% and operating margin at 30.9%. Revenue growth of 69.8% demonstrates continued momentum.

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 : TER

The primary concerns for TER are P/E Ratio, Price/Book, Piotroski F-Score.

Key Dynamics to Monitor

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

SONO carries more volatility with a beta of 1.88 — expect wider price swings.

TER is growing revenue faster at 69.8% — sustainability is the question.

TER generates stronger free cash flow (378M), providing more financial flexibility.

Bottom Line

TER scores higher overall (79/100 vs 47/100), backed by strong 27.5% margins and 69.8% revenue growth. 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.

Teradyne Inc

TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA

Teradyne, Inc. is an American automatic test equipment (ATE) designer and manufacturer based in North Reading, Massachusetts.

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