Head-To-Head Analysis: Sonos (NASDAQ:SONO) & Dorel Industries (OTCMKTS:DIIBF)

Sonos (NASDAQ:SONO) and Dorel Industries (OTCMKTS:DIIBF) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, dividends, risk, profitability, institutional ownership and earnings.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Sonos and Dorel Industries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sonos	0	3	2	0	2.40
Dorel Industries	0	1	0	0	2.00

Sonos currently has a consensus price target of $20.00, suggesting a potential upside of 13.64%. Given Sonos’ stronger consensus rating and higher possible upside, equities analysts plainly believe Sonos is more favorable than Dorel Industries.

Valuation and Earnings

This table compares Sonos and Dorel Industries”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sonos	$1.44 billion	1.44	-$61.14 million	$0.45	39.11
Dorel Industries	$1.19 billion	0.03	-$142.22 million	($4.16)	-0.25

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

Insider & Institutional Ownership

85.8% of Sonos shares are owned by institutional investors. 1.3% of Sonos shares are owned by insiders. Comparatively, 19.3% of Dorel Industries shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Sonos has a beta of 1.88, suggesting that its stock price is 88% more volatile than the S&P 500. Comparatively, Dorel Industries has a beta of 1.63, suggesting that its stock price is 63% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sonos	3.82%	19.10%	8.67%
Dorel Industries	-12.73%	N/A	-11.89%

Summary

Sonos beats Dorel Industries on 12 of the 13 factors compared between the two stocks.

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.

About Dorel Industries

Dorel Industries Inc. engages in the design, manufacture, sourcing, marketing, and distribution of home and juvenile products worldwide. The company operates through Dorel Home and Dorel Juvenile segments. The Dorel Home segment offers ready-to assemble furniture and home furnishings products, including metal folding furniture, futons, children's furniture, step stools, hand trucks, ladders, outdoor furniture, and other imported furniture items. This segment markets its products under the DHP, Signature Sleep, Little Seeds, Ameriwood Home, Cosco Home & Office, Queer Eye, Cosmo Living, Novogratz, Real Rooms, Mr. Kate, Baby Relax, Alphason, Bertini, Ntense, and Notio brands. The Dorel Juvenile segment provides children's accessories comprising infant car seats, strollers, home equipment, toys, infant health, and safety aids under the Maxi-Cosi, Tiny Love, Infanti, Safety 1st, Bébé Confort, Quinny, and Cosco brands. The company was formerly known as Dorel Co. Ltd. and changed its name to Dorel Industries Inc. in May 1987. Dorel Industries Inc. was incorporated in 1962 and is headquartered in Westmount, Canada.