Sonos Inc (SONO)vsToast Inc (TOST)
SONO
Sonos Inc
$15.08
-7.20%
TECHNOLOGY · Cap: $1.88B
TOST
Toast Inc
$24.64
-2.30%
TECHNOLOGY · Cap: $14.40B
Smart Verdict
WallStSmart Research — data-driven comparison
Toast Inc generates 342% more annual revenue ($6.45B vs $1.46B). TOST leads profitability with a 6.4% profit margin vs 1.6%. TOST trades at a lower P/E of 37.0x. TOST earns a higher WallStSmart Score of 67/100 (B-).
SONO
Hold45
out of 100
Grade: D+
TOST
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-34.6%
Fair Value
$12.26
Current Price
$15.08
$2.82 premium
Margin of Safety
-8.6%
Fair Value
$25.81
Current Price
$24.64
$1.17 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 87.5% YoY
Conservative balance sheet, low leverage
Growing faster than its price suggests
Earnings expanding 123.0% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Every $100 of equity generates 21 in profit
Revenue surging 21.9% year-over-year
Areas to Watch
Smaller company, higher risk/reward
ROE of 6.2% — below average capital efficiency
1.6% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
6.4% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : SONO
The strongest argument for SONO centers on EPS Growth, Debt/Equity.
Bull Case : TOST
The strongest argument for TOST centers on PEG Ratio, EPS Growth, Debt/Equity. Revenue growth of 21.9% 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, Profit Margin. A P/E of 92.8x leaves little room for execution misses. Thin 1.6% margins leave little buffer for downturns.
Bear Case : TOST
The primary concerns for TOST are P/E Ratio, Profit Margin.
Key Dynamics to Monitor
SONO profiles as a value stock while TOST is a growth play — different risk/reward profiles.
SONO carries more volatility with a beta of 1.94 — expect wider price swings.
TOST is growing revenue faster at 21.9% — sustainability is the question.
TOST generates stronger free cash flow (115M), providing more financial flexibility.
Bottom Line
TOST scores higher overall (67/100 vs 45/100) and 21.9% 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.
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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