Head to Head Analysis: Sonos (SONO) vs. LRAD (LRAD)

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

Institutional and Insider Ownership

46.5% of Sonos shares are owned by institutional investors. Comparatively, 49.1% of LRAD shares are owned by institutional investors. 15.4% of Sonos shares are owned by insiders. Comparatively, 3.8% of LRAD shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sonos $1.14 billion 0.89 -$15.60 million ($0.24) -41.80
LRAD $26.31 million 3.47 -$3.74 million N/A N/A

LRAD has lower revenue, but higher earnings than Sonos.

Analyst Recommendations

This is a summary of recent recommendations for Sonos and LRAD, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sonos 0 2 4 0 2.67
LRAD 0 0 0 0 N/A

Sonos currently has a consensus price target of $21.00, indicating a potential upside of 109.32%. Given Sonos’ higher possible upside, equities analysts clearly believe Sonos is more favorable than LRAD.

Profitability

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

Net Margins Return on Equity Return on Assets
Sonos N/A N/A N/A
LRAD -3.58% -3.00% -2.48%

Summary

Sonos beats LRAD on 7 of the 10 factors compared between the two stocks.

Sonos Company Profile

Sonos, Inc., together with its subsidiaries, designs, develops, manufactures, and sells multi-room audio products in the United States and internationally. It provides wireless speakers, home theater speakers, and components. The company offers its products through third-party retail stores, including custom installers of home audio systems; and e-commerce retailers, as well as through its sonos.com Website. 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.

LRAD Company Profile

LRAD Corporation designs, develops, and commercializes directed sound technologies and products in North and South America, Europe, the Middle East, Africa, and Asia. It develops directed acoustic communication systems that focus sound over short and long distances. The company offers directional and omnidirectional acoustic systems and accessories. It offers Long Range Acoustic Device primarily for government, military, law enforcement, homeland and international security, private and commercial security, border security, maritime security, and wildlife preservation and control markets. The company was formerly known as American Technology Corporation and changed its name to LRAD Corporation in March 2010. LRAD Corporation was founded in 1980 and is headquartered in San Diego, California.

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