Comparing GoPro (NASDAQ:GPRO) & Sonos (NASDAQ:SONO)

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GoPro	0	1	0	0	2.00
Sonos	1	1	2	0	2.25

GoPro presently has a consensus target price of $0.75, indicating a potential downside of 45.26%. Sonos has a consensus target price of $12.25, indicating a potential upside of 14.06%. Given Sonos’ stronger consensus rating and higher possible upside, analysts plainly believe Sonos is more favorable than GoPro.

Insider & Institutional Ownership

70.1% of GoPro shares are held by institutional investors. Comparatively, 85.8% of Sonos shares are held by institutional investors. 18.4% of GoPro shares are held by insiders. Comparatively, 1.8% of Sonos shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares GoPro and Sonos”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GoPro	$780.31 million	0.28	-$432.31 million	($0.90)	-1.52
Sonos	$1.52 billion	0.85	-$38.15 million	($0.59)	-18.20

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

Volatility and Risk

GoPro has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500. Comparatively, Sonos has a beta of 2.04, indicating that its share price is 104% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GoPro	-17.93%	-60.09%	-17.03%
Sonos	-4.74%	-15.00%	-7.20%

Summary

Sonos beats GoPro on 12 of the 14 factors compared between the two stocks.

About GoPro

GoPro, Inc. develops and sells cameras, mountable and wearable accessories, and subscription services and software in the Americas, Europe, the Middle East, Africa, the Asia and Pacific region, and internationally. The company provides cloud connected HERO12 Black, HERO11 Black, HERO11 Black Mini, HERO10 Black, HERO10 Black Bones, and HERO9 Black waterproof cameras; MAX, a 360-degree waterproof camera; Premium and Premium+ subscription services, which include full access to the Quik app, cloud storage supporting source video and photo quality, camera replacement, and damage protection; Quik subscription that offers access to editing tools, which allows users to edit photos, videos, and create cinematic stories; and Quik desktop and mobile apps that enable users to get their favorite photos and videos with footage from any phone or camera. It also offers mounts and accessories comprising equipment-based mounts consisting of helmet, handlebar, roll bar, and tripod mounts that enable consumers to wear the mount on their bodies, such as wrist housings, magnetic swivel clips, chest harnesses, and head straps; media, display, and light mods; spare batteries, dive filters, and charging accessories and cables; and lifestyle gear, such as bags, backpacks, cases, t-shirts, hats, and other soft goods. In addition, the company provides mobile, desktop, and web applications that provides media workflow for archiving, editing, multi-clip story creation, and sharing content on the fly. GoPro, Inc. sells its products through retailers and wholesale distributors, as well as through its GoPro.com website. The company was formerly known as Woodman Labs, Inc. and changed its name to GoPro, Inc. in February 2014. GoPro, Inc. was founded in 2002 and is headquartered in San Mateo, California.

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.