Head-To-Head Review: Sonos (SONO) & Its Peers

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

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 endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

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	-21.23%	-17.53%	1.13%

Analyst Ratings

This is a summary of recent ratings and target prices for Sonos and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sonos	0	3	2	0	2.40
Sonos Competitors	1739	7289	8064	304	2.40

Sonos currently has a consensus target price of $20.00, suggesting a potential upside of 30.21%. As a group, “Household Durables” companies have a potential upside of 49.88%. Given Sonos’ rivals higher possible upside, analysts plainly believe Sonos has less favorable growth aspects than its rivals.

Volatility & Risk

Sonos has a beta of 1.93, meaning that its stock price is 93% 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.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Sonos	$1.49 billion	-$61.14 million	34.13
Sonos Competitors	$5.30 billion	$322.40 million	10.10

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.

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.