Critical Contrast: Sonos (SONO) versus Its Competitors

Sonos (NASDAQ:SONOGet Free Report) is one of 149 publicly-traded companies in the “Household Durables” industry, but how does it weigh in compared to its competitors? We will compare Sonos to similar companies based on the strength of its earnings, profitability, institutional ownership, dividends, risk, analyst recommendations and valuation.

Institutional and Insider Ownership

85.8% of Sonos shares are held by institutional investors. Comparatively, 53.7% of shares of all “Household Durables” companies are held by institutional investors. 1.3% of Sonos shares are held by company insiders. Comparatively, 18.5% of shares of all “Household Durables” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Sonos and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sonos 3.82% 19.10% 8.67%
Sonos Competitors -21.28% -17.52% 1.13%

Earnings and Valuation

This table compares Sonos and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Sonos $1.44 billion -$61.14 million 35.67
Sonos Competitors $127.77 billion $322.27 million 13.78

Sonos’ competitors have higher revenue and earnings than Sonos. Sonos is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of current recommendations and price targets for Sonos and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sonos 0 3 2 0 2.40
Sonos Competitors 1728 7273 8052 301 2.40

Sonos presently has a consensus target price of $20.00, indicating a potential upside of 24.61%. As a group, “Household Durables” companies have a potential upside of 48.24%. Given Sonos’ competitors higher possible upside, analysts plainly believe Sonos has less favorable growth aspects than its competitors.

Volatility and Risk

Sonos has a beta of 1.95, meaning that its share price is 95% more volatile than the S&P 500. Comparatively, Sonos’ competitors have a beta of 1.74, meaning that their average share price is 74% more volatile than the S&P 500.

Summary

Sonos beats its competitors on 7 of the 13 factors compared.

Sonos Company Profile

(Get Free Report)

Sonos, Inc., together with its subsidiaries, designs, develops, manufactures, and sells audio products and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It offers wireless, portable, and home theater speakers; components; and accessories. The company offers its products through approximately 10,000 third-party retail stores, including custom installers of home audio systems; and e-commerce retailers, as well as through its website. The company was formerly known as Rincon Audio, Inc. and changed its name to Sonos, Inc. in May 2004. Sonos, Inc. was incorporated in 2002 and is headquartered in Santa Barbara, California.

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