NVIDIA vs Sonos Which Is More Profitable?

NVIDIA and Sonos are two tech companies that have been making waves in the stock market. NVIDIA is a leading graphics processing unit (GPU) manufacturer, while Sonos is a specialist in smart speaker technology. Both companies have seen strong growth in recent years, with NVIDIA's stock soaring due to its dominance in the gaming and data center markets, and Sonos' stock performing well thanks to its innovative range of audio products. Investors are watching closely to see which company will continue to outperform in the ever-changing tech sector.

NVIDIA or Sonos?

When comparing NVIDIA and Sonos, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between NVIDIA and Sonos.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. NVIDIA has a dividend yield of 0.02%, while Sonos has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. NVIDIA reports a 5-year dividend growth of -23.48% year and a payout ratio of 1.09%. On the other hand, Sonos reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with NVIDIA P/E ratio at 53.99 and Sonos's P/E ratio at -47.35. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. NVIDIA P/B ratio is 51.68 while Sonos's P/B ratio is 4.21.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, NVIDIA has seen a 5-year revenue growth of 1.68%, while Sonos's is -0.25%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with NVIDIA's ROE at 116.71% and Sonos's ROE at -7.70%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $137.13 for NVIDIA and $14.76 for Sonos. Over the past year, NVIDIA's prices ranged from $45.83 to $152.89, with a yearly change of 233.60%. Sonos's prices fluctuated between $10.23 and $19.76, with a yearly change of 93.16%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.