Sonos Inc (SONO)vsZoom Video Communications Inc (ZM)
SONO
Sonos Inc
$15.12
+3.35%
TECHNOLOGY · Cap: $1.72B
ZM
Zoom Video Communications Inc
$95.57
+0.12%
TECHNOLOGY · Cap: $28.14B
Smart Verdict
WallStSmart Research — data-driven comparison
Zoom Video Communications Inc generates 235% more annual revenue ($4.99B vs $1.49B). ZM leads profitability with a 65.2% profit margin vs 3.8%. ZM trades at a lower P/E of 8.9x. ZM earns a higher WallStSmart Score of 71/100 (B).
SONO
Hold48
out of 100
Grade: D+
ZM
Strong Buy71
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-31.9%
Fair Value
$12.51
Current Price
$15.12
$2.61 premium
Intrinsic value data unavailable for ZM.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 87.5% YoY
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Keeps 65 of every $100 in revenue as profit
Earnings expanding 342.3% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Every $100 of equity generates 29 in profit
Areas to Watch
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
ROE of 6.2% — below average capital efficiency
3.8% margin — thin
4.9% revenue growth
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : SONO
The strongest argument for SONO centers on EPS Growth, Debt/Equity.
Bull Case : ZM
The strongest argument for ZM centers on P/E Ratio, Profit Margin, EPS Growth. Profitability is solid with margins at 65.2% and operating margin at 24.6%.
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 : ZM
The primary concerns for ZM are Revenue Growth, PEG Ratio.
Key Dynamics to Monitor
SONO carries more volatility with a beta of 1.94 — expect wider price swings.
SONO is growing revenue faster at 8.8% — sustainability is the question.
ZM generates stronger free cash flow (472M), providing more financial flexibility.
Monitor CONSUMER ELECTRONICS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ZM scores higher overall (71/100 vs 48/100), backed by strong 65.2% margins. 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.
Zoom Video Communications Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Zoom Video Communications, Inc. provides a premier video communications platform in the Americas, Asia Pacific, Europe, the Middle East, and Africa. The company is headquartered in San Jose, California.
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