Comparing Aftermaster (OTCMKTS:AFTM) & Sonos (NASDAQ:SONO)

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

Institutional & Insider Ownership

85.8% of Sonos shares are held by institutional investors. 10.2% of Aftermaster 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, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Aftermaster	N/A	N/A	N/A
Sonos	-5.41%	-18.19%	-8.71%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aftermaster	N/A	N/A	N/A	N/A	N/A
Sonos	$1.52 billion	1.31	-$38.15 million	($0.65)	-25.25

Aftermaster has higher earnings, but lower revenue than Sonos.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aftermaster	0	0	0	0	0.00
Sonos	1	0	2	0	2.33

Sonos has a consensus target price of $15.00, suggesting a potential downside of 8.59%. Given Aftermaster’s higher probable upside, equities research analysts plainly believe Aftermaster is more favorable than Sonos.

Summary

Aftermaster beats Sonos on 5 of the 9 factors compared between the two stocks.

About Aftermaster

AfterMaster, Inc., together with its subsidiaries, operates as an audio technology company in the United States. It develops and commercializes proprietary audio and video technologies for professional and consumer use. The company offers AfterMaster audio, a mastering, remastering, and audio processing technology that makes various audio source sounds louder, fuller, deeper, and clearer; ProMaster, an online music mastering, streaming, and storage service designed for independent artists; and Aftermaster Pro, a personal audio re-mastering device. It also provides Aftermaster Studio Pro products for use in commercial audio applications; and MyStudio products. In addition, AfterMaster, Inc. operates six recording and mastering studios. The company was formerly known as Studio One Media, Inc. and changed its name to AfterMaster, Inc. in September 2015. AfterMaster, Inc. was incorporated in 1988 and is based in Scottsdale, Arizona.

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.