Analyzing Sonos (SONO) and Sony (SNE)

Sonos (NYSE: SNE) and Sony (NYSE:SNE) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Sonos and Sony, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sonos 0 3 3 0 2.50
Sony 0 5 1 0 2.17

Sony has a consensus price target of $62.61, indicating a potential upside of 11.76%. Given Sonos’ stronger consensus rating and higher possible upside, research analysts clearly believe Sonos is more favorable than Sony.

Institutional and Insider Ownership

7.6% of Sony shares are owned by institutional investors. 7.0% of Sony shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Sonos and Sony’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sonos N/A N/A N/A N/A N/A
Sony $77.15 billion 0.92 $4.42 billion $3.29 17.03

Sony has higher revenue and earnings than Sonos.

Dividends

Sony pays an annual dividend of $0.19 per share and has a dividend yield of 0.3%. Sonos does not pay a dividend. Sony pays out 5.8% of its earnings in the form of a dividend. Sony has raised its dividend for 2 consecutive years.

Profitability

This table compares Sonos and Sony’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sonos N/A N/A N/A
Sony 7.32% 16.74% 3.18%

Summary

Sony beats Sonos on 8 of the 12 factors compared between the two stocks.

Sonos Company Profile

Sonos, Inc., through its subsidiaries, designs, develops, manufactures, and sells multi-room audio products primarily for use in private residences in the United States and internationally. It offers wireless speakers, home theater speakers, and components. The company offers its products through third-party retail stores and e-commerce retailers, as well as through its sonos.com Website. The company was formerly known as Rincon Audio, Inc. and changed its name to Sonos, Inc. in May 2004. Sonos, Inc. was founded in 2002 and is headquartered in Santa Barbara, California.

Sony Company Profile

Sony Corporation designs, develops, produces, and sells electronic equipment, instruments, and devices for the consumer, professional, and industrial markets worldwide. The company offers network services related to games, videos, and music contents; and home and portable game consoles, packaged software, and peripheral devices, as well as broadcast/professional, integrated circuit card technology, and medical and imaging device solutions. It also develops, produces, markets, and distributes recorded music; publishes music; and produces and distributes animation titles, game applications based on animation titles, and various services for music and visual products. In addition, the company offers live-action and animated motion pictures, as well as scripted and unscripted series, daytime serials, game shows, animated series, television movies, and miniseries and other television programs; operates a visual effects and animation unit; manages a studio facility; and operates television and digital networks. Further, it researches, develops, designs, produces, markets, distributes, sells, and services video and sound products; interchangeable lens, compact digital, and consumer and professional video cameras; display products, such as projectors and medical equipment; mobile phones, tablets, accessories, and applications; metal oxide semiconductor image sensors, charge-coupled devices, large-scale integration systems, and other semiconductors. Additionally, the company offers Internet broadband network services; creates and distributes content for various electronics product platforms, such as PCs and mobile phones; and provides life and non-life insurance, banking, and other services, as well as batteries, recording media, and storage media products. The company was formerly known as Tokyo Tsushin Kogyo Kabushiki Kaisha and changed its name to Sony Corporation in January 1958. Sony Corporation was founded in 1946 and is headquartered in Tokyo, Japan.

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