Sonos (NASDAQ:SONO) versus SharkNinja (NYSE:SN) Critical Comparison

SharkNinja (NYSE:SN) and Sonos (NASDAQ:SONO) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, analyst recommendations, institutional ownership and risk.

Institutional & Insider Ownership

34.8% of SharkNinja shares are owned by institutional investors. Comparatively, 85.8% of Sonos shares are owned by institutional investors. 40.8% of SharkNinja shares are owned by insiders. Comparatively, 1.3% of Sonos shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for SharkNinja and Sonos, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SharkNinja	0	1	12	0	2.92
Sonos	0	3	2	0	2.40

SharkNinja currently has a consensus target price of $188.59, suggesting a potential upside of 7.56%. Sonos has a consensus target price of $20.00, suggesting a potential upside of 38.03%. Given Sonos’ higher possible upside, analysts plainly believe Sonos is more favorable than SharkNinja.

Risk & Volatility

SharkNinja has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500. Comparatively, Sonos has a beta of 1.93, meaning that its stock price is 93% more volatile than the S&P 500.

Earnings and Valuation

This table compares SharkNinja and Sonos”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SharkNinja	$6.40 billion	3.86	$701.37 million	$4.90	35.78
Sonos	$1.49 billion	1.15	-$61.14 million	$0.45	32.20

SharkNinja has higher revenue and earnings than Sonos. Sonos is trading at a lower price-to-earnings ratio than SharkNinja, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SharkNinja	10.06%	27.79%	14.19%
Sonos	3.82%	19.10%	8.67%

Summary

SharkNinja beats Sonos on 11 of the 14 factors compared between the two stocks.

About SharkNinja

SharkNinja, Inc., a product design and technology company, engages in the provision of various solutions for consumers worldwide. It offers cleaning appliances, including corded and cordless vacuums, including handheld and robotic vacuums, as well as other floorcare products comprising steam mops, wet/dry cleaning floor products, and carpet extraction; cooking and beverage appliances, such as air fryers, multi-cookers, outdoor and countertop grills and ovens, coffee systems, carbonation, cookware, cutlery, kettles, toasters and bakeware; food preparation appliances comprising blenders, food processors, ice cream makers, and juicers; and beauty appliances, such as hair dryers and stylers, as well as home environment products comprising air purifiers and humidifiers. The company sells its products through traditional brick-and-mortar retail channels and e-commerce channels, distributors, and direct-to-consumer channels under the Shark and Ninja brands. SharkNinja, Inc. was incorporated in 2017 and is headquartered in Needham, Massachusetts.

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.