Sony (NYSE:SONY – Get Free Report) and Sleep Number (NASDAQ:SNBR – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.
Risk and Volatility
Sony has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, Sleep Number has a beta of 2.49, meaning that its stock price is 149% more volatile than the S&P 500.
Institutional & Insider Ownership
14.1% of Sony shares are owned by institutional investors. Comparatively, 85.7% of Sleep Number shares are owned by institutional investors. 7.0% of Sony shares are owned by company insiders. Comparatively, 3.6% of Sleep Number shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Sony | -2.00% | 13.06% | 5.22% |
| Sleep Number | -12.98% | N/A | -16.48% |
Analyst Recommendations
This is a summary of current recommendations and price targets for Sony and Sleep Number, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sony | 1 | 1 | 4 | 1 | 2.71 |
| Sleep Number | 2 | 2 | 0 | 0 | 1.50 |
Sony presently has a consensus price target of $22.00, suggesting a potential downside of 6.63%. Sleep Number has a consensus price target of $3.50, suggesting a potential upside of 2,700.00%. Given Sleep Number’s higher possible upside, analysts clearly believe Sleep Number is more favorable than Sony.
Earnings and Valuation
This table compares Sony and Sleep Number”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sony | $82.90 billion | 1.68 | -$2.16 billion | $1.12 | 21.04 |
| Sleep Number | $1.34 billion | 0.00 | -$131.96 million | ($7.56) | -0.02 |
Sleep Number has lower revenue, but higher earnings than Sony. Sleep Number is trading at a lower price-to-earnings ratio than Sony, indicating that it is currently the more affordable of the two stocks.
Summary
Sony beats Sleep Number on 11 of the 15 factors compared between the two stocks.
About Sony
Sony Group Corporation designs, develops, produces, and sells electronic equipment, instruments, and devices for the consumer, professional, and industrial markets in Japan, the United States, Europe, China, the Asia-Pacific, and internationally. The company distributes software titles and add-on content through digital networks; network services related to game, video, and music content; and home gaming consoles, packaged and game software, and peripheral devices. It also develops, produces, markets, and distributes recorded music; publishes music; and produces and distributes animation titles, game applications, and various services for music and visual products. In addition, the company produces, acquires, and distributes live-action and animated motion pictures for theatrical release, as well as scripted and animated series, unscripted reality or light entertainment, daytime serials, game shows, television movies, and miniseries and other television programs; operation of television networks and direct-to-consumer streaming services; operates a visual effects and animation unit; and manages a studio facility. Further, it researches, develops, designs, produces, markets, distributes, sells, and services televisions, and video and sound products; interchangeable lens, as well as compact digital, and consumer and professional video cameras; projectors and medical equipment; mobile phones, accessories, and applications; and metal oxide semiconductor image sensors, charge-coupled devices, integration systems, and other semiconductors. Additionally, it offers Internet broadband network services; recording media, and storage media products; and life and non-life insurance, banking, and other services, as well as creates and distributes content for PCs and mobile phones. The company was formerly known as Sony Corporation and changed its name to Sony Group Corporation in April 2021. Sony Group Corporation was incorporated in 1946 and is headquartered in Tokyo, Japan.
About Sleep Number
Sleep Number Corporation, together with its subsidiaries, offers sleep solutions and services in the United States. The company designs, manufactures, markets, retails, and services beds, pillows, sheets, and other bedding products under the Sleep Number name. It also provides smart adjustable bases under the FlextFit brand, and smart beds under the Climate 360 name. The company sells its products directly to consumers through retail, online, phone, chat, and other. The company was formerly known as Select Comfort Corporation and changed its name to Sleep Number Corporation in November 2017. Sleep Number Corporation was incorporated in 1987 and is headquartered in Minneapolis, Minnesota.
Receive News & Ratings for Sony Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Sony and related companies with MarketBeat.com's FREE daily email newsletter.
