Sonos (NYSE: SNE) and Sony (NYSE:SNE) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, profitability, institutional ownership and valuation.

Profitability

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

Net Margins Return on Equity Return on Assets
Sonos N/A N/A N/A
Sony 7.32% 16.74% 3.18%

Dividends

Sony pays an annual dividend of $0.19 per share and has a dividend yield of 0.3%. Sonos does not pay a dividend. Sony pays out 5.8% of its earnings in the form of a dividend. Sony has raised its dividend for 2 consecutive years.

Earnings and Valuation

This table compares Sonos and Sony’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sonos N/A N/A N/A N/A N/A
Sony $77.15 billion 0.93 $4.42 billion $3.29 17.18

Sony has higher revenue and earnings than Sonos.

Insider & Institutional Ownership

7.6% of Sony shares are held by institutional investors. 7.0% of Sony shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for Sonos and Sony, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sonos 0 3 3 0 2.50
Sony 0 5 1 0 2.17

Sonos currently has a consensus target price of $22.83, indicating a potential upside of 22.50%. Sony has a consensus target price of $62.61, indicating a potential upside of 10.79%. Given Sonos’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Sonos is more favorable than Sony.

Summary

Sony beats Sonos on 8 of the 12 factors compared between the two stocks.

About Sonos

Sonos, Inc., through its subsidiaries, designs, develops, manufactures, and sells multi-room audio products primarily for use in private residences in the United States and internationally. It offers wireless speakers, home theater speakers, and components. The company offers its products through third-party retail stores and e-commerce retailers, as well as through its sonos.com Website. The company was formerly known as Rincon Audio, Inc. and changed its name to Sonos, Inc. in May 2004. Sonos, Inc. was founded in 2002 and is headquartered in Santa Barbara, California.

About Sony

Sony Corporation designs, develops, produces, and sells electronic equipment, instruments, and devices for the consumer, professional, and industrial markets worldwide. The company offers network services related to games, videos, and music contents; and home and portable game consoles, packaged software, and peripheral devices, as well as broadcast/professional, integrated circuit card technology, and medical and imaging device solutions. It also develops, produces, markets, and distributes recorded music; publishes music; and produces and distributes animation titles, game applications based on animation titles, and various services for music and visual products. In addition, the company offers live-action and animated motion pictures, as well as scripted and unscripted series, daytime serials, game shows, animated series, television movies, and miniseries and other television programs; operates a visual effects and animation unit; manages a studio facility; and operates television and digital networks. Further, it researches, develops, designs, produces, markets, distributes, sells, and services video and sound products; interchangeable lens, compact digital, and consumer and professional video cameras; display products, such as projectors and medical equipment; mobile phones, tablets, accessories, and applications; metal oxide semiconductor image sensors, charge-coupled devices, large-scale integration systems, and other semiconductors. Additionally, the company offers Internet broadband network services; creates and distributes content for various electronics product platforms, such as PCs and mobile phones; and provides life and non-life insurance, banking, and other services, as well as batteries, recording media, and storage media products. The company was formerly known as Tokyo Tsushin Kogyo Kabushiki Kaisha and changed its name to Sony Corporation in January 1958. Sony Corporation was founded in 1946 and is headquartered in Tokyo, Japan.

Receive News & Ratings for Sonos Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Sonos and related companies with MarketBeat.com's FREE daily email newsletter.