Sonos (NASDAQ:SONO – Get Free Report) and Dorel Industries (OTCMKTS:DIIBF – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, valuation, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
85.8% of Sonos shares are owned by institutional investors. 1.3% of Sonos shares are owned by insiders. Comparatively, 19.3% of Dorel Industries shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Sonos and Dorel Industries, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sonos | 0 | 3 | 2 | 0 | 2.40 |
| Dorel Industries | 0 | 1 | 0 | 0 | 2.00 |
Profitability
This table compares Sonos and Dorel Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sonos | 3.82% | 19.10% | 8.67% |
| Dorel Industries | -12.73% | N/A | -11.89% |
Valuation & Earnings
This table compares Sonos and Dorel Industries”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sonos | $1.44 billion | 1.41 | -$61.14 million | $0.45 | 38.36 |
| Dorel Industries | $1.19 billion | 0.03 | -$142.22 million | ($4.16) | -0.22 |
Sonos has higher revenue and earnings than Dorel Industries. Dorel Industries is trading at a lower price-to-earnings ratio than Sonos, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Sonos has a beta of 1.88, suggesting that its share price is 88% more volatile than the S&P 500. Comparatively, Dorel Industries has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500.
Summary
Sonos beats Dorel Industries on 13 of the 14 factors compared between the two stocks.
About Sonos
Sonos, Inc., together with its subsidiaries, designs, develops, manufactures, and sells audio products and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It offers wireless, portable, and home theater speakers; components; and accessories. The company offers its products through approximately 10,000 third-party retail stores, including custom installers of home audio systems; and e-commerce retailers, as well as through its website. The company was formerly known as Rincon Audio, Inc. and changed its name to Sonos, Inc. in May 2004. Sonos, Inc. was incorporated in 2002 and is headquartered in Santa Barbara, California.
About Dorel Industries
Dorel Industries Inc. engages in the design, manufacture, sourcing, marketing, and distribution of home and juvenile products worldwide. The company operates through Dorel Home and Dorel Juvenile segments. The Dorel Home segment offers ready-to assemble furniture and home furnishings products, including metal folding furniture, futons, children's furniture, step stools, hand trucks, ladders, outdoor furniture, and other imported furniture items. This segment markets its products under the DHP, Signature Sleep, Little Seeds, Ameriwood Home, Cosco Home & Office, Queer Eye, Cosmo Living, Novogratz, Real Rooms, Mr. Kate, Baby Relax, Alphason, Bertini, Ntense, and Notio brands. The Dorel Juvenile segment provides children's accessories comprising infant car seats, strollers, home equipment, toys, infant health, and safety aids under the Maxi-Cosi, Tiny Love, Infanti, Safety 1st, Bébé Confort, Quinny, and Cosco brands. The company was formerly known as Dorel Co. Ltd. and changed its name to Dorel Industries Inc. in May 1987. Dorel Industries Inc. was incorporated in 1962 and is headquartered in Westmount, Canada.
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