Financial Analysis: Sonos (SONO) versus 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 businesses based on the strength of its risk, dividends, profitability, valuation, earnings, institutional ownership and analyst recommendations.

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

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 -21.29% -17.54% 1.12%

Analyst Ratings

This is a breakdown of current recommendations for Sonos and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sonos 0 3 2 0 2.40
Sonos Competitors 1732 7274 8054 301 2.40

Sonos currently has a consensus price target of $20.00, suggesting a potential upside of 26.34%. As a group, “Household Durables” companies have a potential upside of 47.87%. Given Sonos’ peers higher probable upside, analysts clearly believe Sonos has less favorable growth aspects than its peers.

Volatility & Risk

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

Valuation & Earnings

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 35.18
Sonos Competitors $5.27 billion $319.19 million 14.74

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.

Summary

Sonos beats its peers 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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