Sonos vs WPP Which Should You Buy?

Sonos and WPP are two well-known companies in the stock market, each operating in different sectors. Sonos, a leader in home audio and smart speaker technology, has shown impressive growth and innovation in recent years. On the other hand, WPP is a global advertising and public relations conglomerate, navigating through a rapidly changing industry landscape. Both companies have their unique strengths and weaknesses, making them interesting choices for investors seeking to diversify their portfolios.

Sonos or WPP?

When comparing Sonos and WPP, 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 WPP.

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 WPP has a dividend yield of 3.53%. 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, WPP reports a 5-year dividend growth of -9.86% year and a payout ratio of 207.87%.

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 -46.37 and WPP's P/E ratio at 234.41. 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 4.13 while WPP's P/B ratio is 13.63.

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 WPP's is 0.55%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Sonos's ROE at -7.70% and WPP's ROE at 5.92%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $14.44 for Sonos and $55.75 for WPP. Over the past year, Sonos's prices ranged from $10.23 to $19.76, with a yearly change of 93.16%. WPP's prices fluctuated between $43.02 and $57.37, with a yearly change of 33.36%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.