Andrea Electronics (OTCMKTS:ANDR) & Sonos (NASDAQ:SONO) Head-To-Head Review

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

Insider and Institutional Ownership

85.8% of Sonos shares are held by institutional investors. Comparatively, 0.0% of Andrea Electronics shares are held by institutional investors. 1.8% of Sonos shares are held by company insiders. Comparatively, 13.2% of Andrea Electronics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sonos	-4.74%	-15.00%	-7.20%
Andrea Electronics	N/A	N/A	N/A

Valuation and Earnings

This table compares Sonos and Andrea Electronics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sonos	$1.52 billion	0.85	-$38.15 million	($0.59)	-18.19
Andrea Electronics	$1.96 million	N/A	-$290,000.00	N/A	N/A

Andrea Electronics has lower revenue, but higher earnings than Sonos.

Analyst Recommendations

This is a summary of current recommendations and price targets for Sonos and Andrea Electronics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sonos	1	1	2	0	2.25
Andrea Electronics	0	0	0	0	0.00

Sonos currently has a consensus target price of $12.25, suggesting a potential upside of 14.17%. Given Sonos’ stronger consensus rating and higher possible upside, equities analysts plainly believe Sonos is more favorable than Andrea Electronics.

Risk & Volatility

Sonos has a beta of 2.06, indicating that its stock price is 106% more volatile than the S&P 500. Comparatively, Andrea Electronics has a beta of -0.26, indicating that its stock price is 126% less volatile than the S&P 500.

Summary

Sonos beats Andrea Electronics on 6 of the 11 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 Andrea Electronics

Andrea Electronics Corporation, together with its subsidiaries, designs, develops, and manufactures digital microphone products and noise reduction software that facilitate natural language and human/machine interfaces for the computer and business enterprise markets in the United States and internationally. The company develops digital signal processing (DSP) products and technologies for the voice, speech, and natural language interface markets. Its DSP microphone and audio noise reduction software products include DA-350 auto array microphone for far-field voice intelligibility and accuracy of automatic speech recognition in automotive and mass transit environments; DA-250 OEM array microphone, a small compact stereo array microphone and DSP circuit board platform; USB-SA array microphone, which offers a USB digital audio adapter to bypass a computer’s standard integrated sound system; AudioCommander, a PC audio control panel; an audio software for Mac that offers an intuitive graphic user interface to control stereo array microphone beam forming and noise cancellation on the input and EQ filters; PureAudio Live Recorder, a digital voice and audio recording application; and PureAudio Plus Recorder, which provides bookmarks for navigation of recordings. Its products are used in various applications, including mass transit and automotive communication systems, automated teller machines, information kiosks, quick service restaurant automated ordering, Internet of Things, smart building entrance intercom systems, audio and video recordings, and video surveillance. The company markets and sells its products through sales representatives to computer and kiosk OEMs and industrial system integrators. Andrea Electronics Corporation was incorporated in 1934 and is headquartered in Bohemia, New York.