Sleep Number (NASDAQ:SNBR) vs. Sony (NYSE:SONY) Head to Head Survey

Sleep Number (NASDAQ:SNBR) and Sony (NYSE:SONY) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, analyst recommendations, institutional ownership and earnings.

Risk & Volatility

Sleep Number has a beta of 2.49, suggesting that its share price is 149% more volatile than the S&P 500. Comparatively, Sony has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.

Valuation & Earnings

This table compares Sleep Number and Sony”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sleep Number	$1.34 billion	0.00	-$131.96 million	($7.56)	-0.02
Sony	$82.90 billion	1.68	-$2.16 billion	$1.12	21.04

Sleep Number has higher earnings, but lower revenue 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sleep Number	-12.98%	N/A	-16.48%
Sony	-2.00%	13.06%	5.22%

Analyst Ratings

This is a summary of recent recommendations and price targets for Sleep Number and Sony, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sleep Number	2	2	0	0	1.50
Sony	1	1	4	1	2.71

Sleep Number presently has a consensus target price of $3.50, suggesting a potential upside of 2,700.00%. Sony has a consensus target price of $22.00, suggesting a potential downside of 6.63%. Given Sleep Number’s higher probable upside, equities research analysts plainly believe Sleep Number is more favorable than Sony.

Institutional and Insider Ownership

85.7% of Sleep Number shares are held by institutional investors. Comparatively, 14.1% of Sony shares are held by institutional investors. 3.6% of Sleep Number shares are held by insiders. Comparatively, 7.0% of Sony shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Sony beats Sleep Number on 11 of the 15 factors compared between the two stocks.

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.

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.