Sonos (SONO) versus The Competition Critical Contrast

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

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 large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Sonos and its competitors, 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	1742	7291	8065	305	2.40

Sonos currently has a consensus price target of $20.00, indicating a potential upside of 38.03%. As a group, “Household Durables” companies have a potential upside of 53.65%. Given Sonos’ competitors higher probable upside, analysts plainly believe Sonos has less favorable growth aspects than its competitors.

Valuation & Earnings

This table compares Sonos and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sonos	$1.49 billion	-$61.14 million	32.20
Sonos Competitors	$127.77 billion	$322.40 million	9.74

Sonos’ competitors have higher revenue and earnings than Sonos. Sonos is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

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

Profitability

This table compares Sonos and its competitors’ 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%

Summary

Sonos beats its competitors 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.