Sonos vs Alphabet Which Should You Buy?

Sonos and Alphabet (Google's parent company) are both well-known companies in the technology sector, but they operate in vastly different markets. Sonos specializes in wireless audio products and smart speakers, while Alphabet is a diversified tech giant with interests in search engines, advertising, and artificial intelligence. Both companies have seen significant growth in recent years, but investors may want to consider their respective strengths, weaknesses, and potential for future growth before deciding on which stock to invest in.

Sonos or Alphabet?

When comparing Sonos and Alphabet, 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 Sonos and Alphabet.

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. Sonos has a dividend yield of -%, while Alphabet has a dividend yield of 0.31%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Sonos reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Alphabet reports a 5-year dividend growth of 0.00% year and a payout ratio of 5.22%.

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 Sonos P/E ratio at -46.33 and Alphabet's P/E ratio at 25.47. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Sonos P/B ratio is 4.12 while Alphabet's P/B ratio is 7.65.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Sonos has seen a 5-year revenue growth of -0.25%, while Alphabet's is 1.47%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Sonos's ROE at -7.70% and Alphabet's ROE at 31.66%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $14.27 for Sonos and $186.26 for Alphabet. Over the past year, Sonos's prices ranged from $10.23 to $19.76, with a yearly change of 93.16%. Alphabet's prices fluctuated between $131.06 and $196.89, with a yearly change of 50.23%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.