Financial Contrast: Sonos (SONO) vs. The Competition

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 peers? We will compare Sonos to similar companies based on the strength of its profitability, valuation, analyst recommendations, institutional ownership, earnings, risk and dividends.

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Sonos $1.44 billion -$61.14 million 35.91
Sonos Competitors $5.26 billion $319.32 million 10.11

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

Profitability

This table compares Sonos and its peers’ 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 -21.23% -17.53% 1.13%

Risk and Volatility

Sonos has a beta of 1.93, meaning that its share price is 93% more volatile than the S&P 500. Comparatively, Sonos’ peers have a beta of 1.74, meaning that their average share price is 74% more volatile than the S&P 500.

Insider and Institutional Ownership

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Sonos and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sonos 0 3 2 0 2.40
Sonos Competitors 1737 7287 8064 303 2.40

Sonos currently has a consensus price target of $20.00, suggesting a potential upside of 23.76%. As a group, “Household Durables” companies have a potential upside of 49.58%. Given Sonos’ peers higher possible upside, analysts plainly believe Sonos has less favorable growth aspects than its peers.

Summary

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

About Sonos

(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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