Reviewing Sonos (SONO) & Its Rivals

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

Volatility & Risk

Sonos has a beta of 1.93, suggesting that its stock price is 93% more volatile than the S&P 500. Comparatively, Sonos’ peers have a beta of 1.75, suggesting that their average stock price is 75% more volatile than the S&P 500.

Earnings and Valuation

This table compares Sonos and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sonos	$1.49 billion	-$61.14 million	32.19
Sonos Competitors	$127.76 billion	$322.40 million	9.68

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.

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	-21.24%	-17.54%	1.13%

Institutional and Insider Ownership

85.8% of Sonos shares are owned by institutional investors. Comparatively, 53.7% of shares of all “Household Durables” companies are owned by institutional investors. 1.3% of Sonos shares are owned by company insiders. Comparatively, 18.5% of shares of all “Household Durables” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Sonos and its peers, 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	1744	7293	8067	305	2.40

Sonos currently has a consensus target price of $20.00, indicating a potential upside of 38.05%. As a group, “Household Durables” companies have a potential upside of 53.97%. Given Sonos’ peers higher probable upside, analysts plainly believe Sonos has less favorable growth aspects than its peers.

Summary

Sonos beats its peers 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.