Financial Comparison: LIZHI (NASDAQ:SOGP) and Sonos (NASDAQ:SONO)

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Sonos and LIZHI, as provided by MarketBeat.com.

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

Sonos currently has a consensus target price of $12.25, suggesting a potential upside of 16.33%. Given Sonos’ stronger consensus rating and higher probable upside, analysts plainly believe Sonos is more favorable than LIZHI.

Insider and Institutional Ownership

85.8% of Sonos shares are owned by institutional investors. Comparatively, 1.6% of LIZHI shares are owned by institutional investors. 1.8% of Sonos shares are owned by insiders. Comparatively, 25.2% of LIZHI shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

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

Volatility & Risk

Sonos has a beta of 2.04, indicating that its stock price is 104% more volatile than the S&P 500. Comparatively, LIZHI has a beta of 2.69, indicating that its stock price is 169% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sonos	$1.52 billion	0.83	-$38.15 million	($0.59)	-17.85
LIZHI	$278.36 million	0.11	-$9.53 million	N/A	N/A

LIZHI has lower revenue, but higher earnings than Sonos.

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 LIZHI

Sound Group Inc. operates as an audio-centric social and entertainment company. It focuses on building audio platform to connect and communicate. The company, through its product portfolio and in-house technologies, caters to user interest in audio entertainment and social networking. The company was formerly known as LIZHI INC. and changed its name to Sound Group Inc. in January 2024. Sound Group Inc. was founded in 2010 and is based in Singapore.