Sonos, Inc. (SONO) vs Turtle Beach Corporation (TBCH)

Sonos, Inc. and Turtle Beach Corporation are both Consumer Electronics companies. Sonos, Inc. is the larger, with a market value of $2.1B against $228.7M — 9.3× the size. Turtle Beach Corporation has negative trailing earnings, so its P/E is not meaningful; Sonos, Inc. trades at 37.9×. Sonos, Inc. grew revenue faster over the last twelve months: 5.64% against −17.5%. Sonos, Inc. has the higher net margin (3.82% vs −1.07%) and the higher return on invested capital (28.9% vs 4.05%). Across the 21 metrics below, Sonos, Inc. leads on 12 and Turtle Beach Corporation on 9.

Valuation

Metric SONO TBCH Consumer Electronics median
P/E 37.88 n/m —
P/S 1.45 0.82 1.37
P/B 5.36 3.03 1.88
Price to free cash flow 17.28 7.58 13.04
EV/EBITDA 16.80 13.92 7.02
EV/Sales 1.31 1.03 1.24
Earnings yield 2.64% (1.41%) (26.50%)
Free cash flow yield 5.79% 13.20% (0.52%)

Profitability

Metric SONO TBCH Consumer Electronics median
Gross margin 46.51% 37.21% 29.45%
Operating margin 4.43% 3.09% (0.42%)
Net margin 3.82% (1.07%) (13.99%)
Free cash flow margin 8.40% 10.83% 0.00%
Return on equity 14.18% (3.23%) (2.86%)
Return on assets 6.63% (1.40%) (4.86%)
Return on invested capital 28.93% 4.05% 0.00%

Growth

Metric SONO TBCH Consumer Electronics median
Revenue growth (TTM) 5.64% (17.54%) 4.39%
EPS growth (last fiscal year) (64.52%) (1.28%) —
Revenue growth, 5-year CAGR 1.70% (2.34%) (3.25%)
Net income growth, 5-year CAGR 0.00% (16.50%) 0.00%

Health

Metric SONO TBCH Consumer Electronics median
Debt to equity 0.00 1.00 0.03
Current ratio 1.61 2.38 1.61
Net debt to EBITDA (19.20) 1.65 0.72

Dividend

Metric SONO TBCH Consumer Electronics median
Dividend yield — — —
Payout ratio 0.00 0.00 0.00

Size

Metric SONO TBCH Consumer Electronics median
Market cap 2.13b 228.71m 42.23m

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