WallStSmart

Sonos Inc (SONO)vsUpbound Group Inc. (UPBD)

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Smart Verdict

WallStSmart Research — data-driven comparison

Upbound Group Inc. generates 206% more annual revenue ($4.73B vs $1.55B). SONO leads profitability with a 5.8% profit margin vs 2.4%. UPBD trades at a lower P/E of 13.0x. UPBD earns a higher WallStSmart Score of 63/100 (C+).

SONO

Buy

59

out of 100

Grade: C

Growth: 6.7Profit: 5.0Value: 3.7Quality: 7.0
Piotroski: 3/9Altman Z: 2.04

UPBD

Buy

63

out of 100

Grade: C+

Growth: 5.3Profit: 5.5Value: 8.0Quality: 4.0
Piotroski: 2/9Altman Z: 2.65
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SONOSignificantly Overvalued (-27.4%)

Margin of Safety

-27.4%

Fair Value

$12.95

Current Price

$18.11

$5.16 premium

UndervaluedFair: $12.95Overvalued
UPBDUndervalued (+33.7%)

Margin of Safety

+33.7%

Fair Value

$29.86

Current Price

$23.88

$5.98 discount

UndervaluedFair: $29.86Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SONO3 strengths · Avg: 9.0/10
EPS GrowthGrowth
87.5%10/10

Earnings expanding 87.5% YoY

Debt/EquityHealth
0.129/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
19.6%8/10

19.6% revenue growth

UPBD3 strengths · Avg: 8.7/10
EPS GrowthGrowth
163.6%10/10

Earnings expanding 163.6% YoY

P/E RatioValuation
13.0x8/10

Attractively priced relative to earnings

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Areas to Watch

SONO4 concerns · Avg: 2.8/10
Return on EquityProfitability
6.2%3/10

ROE of 6.2% — below average capital efficiency

Profit MarginProfitability
5.8%3/10

5.8% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
42.4x2/10

Premium valuation, high expectations priced in

UPBD4 concerns · Avg: 2.8/10
Market CapQuality
$1.47B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
2.4%3/10

2.4% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Revenue GrowthGrowth
-1.6%2/10

Revenue declined 1.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : SONO

The strongest argument for SONO centers on EPS Growth, Debt/Equity, Revenue Growth. Revenue growth of 19.6% demonstrates continued momentum.

Bull Case : UPBD

The strongest argument for UPBD centers on EPS Growth, P/E Ratio, Price/Book. PEG of 1.39 suggests the stock is reasonably priced for its growth.

Bear Case : SONO

The primary concerns for SONO are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 42.4x leaves little room for execution misses.

Bear Case : UPBD

The primary concerns for UPBD are Market Cap, Profit Margin, Piotroski F-Score. Debt-to-equity of 2.17 is elevated, increasing financial risk. Thin 2.4% margins leave little buffer for downturns.

Key Dynamics to Monitor

SONO profiles as a growth stock while UPBD is a value 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 19.6% — sustainability is the question.

UPBD generates stronger free cash flow (132M), providing more financial flexibility.

Bottom Line

UPBD scores higher overall (63/100 vs 59/100). Both earn "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.

Upbound Group Inc.

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Upbound Group, Inc., an omni-channel platform company, leases household durable goods to customers on a lease-to-own basis in the United States, Puerto Rico, and Mexico. The company is headquartered in Plano, Texas.

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