Sonos Inc (SONO)vsToast Inc (TOST)
SONO
Sonos Inc
$14.67
+1.31%
TECHNOLOGY · Cap: $1.77B
TOST
Toast Inc
$28.52
-0.35%
TECHNOLOGY · Cap: $16.81B
Smart Verdict
WallStSmart Research — data-driven comparison
Toast Inc generates 328% more annual revenue ($6.15B vs $1.44B). TOST leads profitability with a 5.6% profit margin vs -1.2%. TOST earns a higher WallStSmart Score of 65/100 (B-).
SONO
Hold42
out of 100
Grade: D
TOST
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+42.1%
Fair Value
$28.49
Current Price
$14.67
$13.82 discount
Margin of Safety
+47.0%
Fair Value
$52.92
Current Price
$28.52
$24.40 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 87.5% YoY
Growing faster than its price suggests
Earnings expanding 228.2% YoY
Safe zone — low bankruptcy risk
Revenue surging 22.0% year-over-year
Areas to Watch
Smaller company, higher risk/reward
ROE of -3.9% — below average capital efficiency
Revenue declined 0.9%
Currently unprofitable
5.6% margin — thin
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : SONO
The strongest argument for SONO centers on EPS Growth.
Bull Case : TOST
The strongest argument for TOST centers on PEG Ratio, EPS Growth, Altman Z-Score. Revenue growth of 22.0% demonstrates continued momentum. PEG of 0.24 suggests the stock is reasonably priced for its growth.
Bear Case : SONO
The primary concerns for SONO are Market Cap, Return on Equity, Revenue Growth.
Bear Case : TOST
The primary concerns for TOST are Profit Margin, P/E Ratio. A P/E of 51.8x leaves little room for execution misses.
Key Dynamics to Monitor
SONO profiles as a turnaround stock while TOST is a growth play — different risk/reward profiles.
SONO carries more volatility with a beta of 2.00 — expect wider price swings.
TOST is growing revenue faster at 22.0% — sustainability is the question.
TOST generates stronger free cash flow (178M), providing more financial flexibility.
Bottom Line
TOST scores higher overall (65/100 vs 42/100) and 22.0% revenue growth. SONO offers better value entry with a 42.1% margin of safety. 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.
Toast Inc
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Toast, Inc. operates a cloud-based technology platform for the restaurant industry in the United States and Ireland. The company is headquartered in Boston, Massachusetts.
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