Head to Head Analysis: Sonos (SONO) & Its Peers

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Sonos and its rivals, 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’ rivals higher probable upside, analysts clearly believe Sonos has less favorable growth aspects than its rivals.

Profitability

This table compares Sonos and its rivals’ 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%

Valuation and Earnings

This table compares Sonos and its rivals gross revenue, earnings per share 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’ rivals have higher revenue and earnings than Sonos. Sonos is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

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 endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

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

Summary

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

About Sonos

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.