Sonos Inc (SONO)vsZoom Video Communications Inc (ZM)
SONO
Sonos Inc
$15.08
-7.20%
TECHNOLOGY · Cap: $1.88B
ZM
Zoom Video Communications Inc
$101.62
-3.41%
TECHNOLOGY · Cap: $27.47B
Smart Verdict
WallStSmart Research — data-driven comparison
Zoom Video Communications Inc generates 238% more annual revenue ($4.93B vs $1.46B). ZM leads profitability with a 42.0% profit margin vs 1.6%. ZM trades at a lower P/E of 13.8x. ZM earns a higher WallStSmart Score of 70/100 (B-).
SONO
Hold45
out of 100
Grade: D+
ZM
Strong Buy70
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
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
Keeps 42 of every $100 in revenue as profit
Earnings expanding 74.2% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Every $100 of equity generates 21 in profit
Attractively priced relative to earnings
Areas to Watch
Smaller company, higher risk/reward
ROE of 6.2% — below average capital efficiency
1.6% margin — thin
Weak financial health signals
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 Profit Margin, EPS Growth, Debt/Equity. Profitability is solid with margins at 42.0% and operating margin at 25.1%.
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 : ZM
The primary concerns for ZM are PEG Ratio.
Key Dynamics to Monitor
SONO profiles as a value stock while ZM is a mature 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 8.4% — sustainability is the question.
ZM generates stronger free cash flow (500M), providing more financial flexibility.
Bottom Line
ZM scores higher overall (70/100 vs 45/100), backed by strong 42.0% 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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