Head to Head Analysis: Sonos (SONO) & Its Peers
by Mitch Edgeman · The Markets DailySonos (NASDAQ:SONO – Get Free Report) 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.