Sony Group (NYSE:SONY) & Sonos (NASDAQ:SONO) Critical Survey

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

Earnings & Valuation

This table compares Sony Group and Sonos’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sony Group $84.90 billion 1.42 $11.01 billion $8.84 11.15
Sonos $1.33 billion 3.23 -$20.11 million ($0.18) -191.17

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

Profitability

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

Net Margins Return on Equity Return on Assets
Sony Group 13.02% 21.70% 4.55%
Sonos 7.08% 43.14% 19.89%

Institutional and Insider Ownership

7.8% of Sony Group shares are owned by institutional investors. Comparatively, 77.9% of Sonos shares are owned by institutional investors. 7.0% of Sony Group shares are owned by insiders. Comparatively, 3.7% of Sonos shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings for Sony Group and Sonos, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sony Group 0 0 0 0 N/A
Sonos 0 4 4 0 2.50

Sonos has a consensus price target of $29.43, indicating a potential downside of 14.48%. Given Sonos’ higher probable upside, analysts clearly believe Sonos is more favorable than Sony Group.

Volatility & Risk

Sony Group has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, Sonos has a beta of 1.9, indicating that its share price is 90% more volatile than the S&P 500.

Summary

Sonos beats Sony Group on 8 of the 13 factors compared between the two stocks.

Sony Group Company Profile

Sony Group Corporation designs, develops, produces, and sells electronic equipment, instruments, and devices for the consumer, professional, and industrial markets worldwide. The company distributes software titles and add-on content through digital networks; network services related to game, video, and music content; and home and portable game consoles, packaged software, and peripheral devices. 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 produces, acquires, and distributes live-action and animated motion pictures for theatrical release, as well as scripted and animated series, unscripted reality or light entertainment, daytime serials, game shows, 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, and post-production facilities. Further, it researches, develops, designs, produces, markets, distributes, sells, and services televisions, and video and sound products; interchangeable lens, compact digital, and consumer and professional video cameras; projectors and medical equipment; mobile phones, tablets, accessories, and applications; and metal oxide semiconductor image sensors, charge-coupled devices, large-scale integration systems, and other semiconductors. Additionally, it offers Internet broadband network services; creates and distributes content for 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 Sony Corporation and changed its name to Sony Group Corporation in April 2021. Sony Group Corporation was incorporated in 1946 and is headquartered in Tokyo, Japan.

Sonos Company Profile

Sonos, Inc., together with its subsidiaries, designs, develops, manufactures, and sells multi-room audio products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company provides wireless speakers, home theater speakers, components, and accessories. It 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 sonos.com. 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.

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