Dorel Industries (OTCMKTS:DIIBF – Get Free Report) and Sonos (NASDAQ:SONO – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, valuation and institutional ownership.
Risk and Volatility
Dorel Industries has a beta of 1.63, meaning that its stock price is 63% more volatile than the S&P 500. Comparatively, Sonos has a beta of 1.88, meaning that its stock price is 88% more volatile than the S&P 500.
Valuation and Earnings
This table compares Dorel Industries and Sonos”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Dorel Industries | $1.19 billion | 0.03 | -$142.22 million | ($4.16) | -0.24 |
| Sonos | $1.44 billion | 1.45 | -$61.14 million | $0.45 | 39.38 |
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.
Institutional & Insider Ownership
85.8% of Sonos shares are owned by institutional investors. 19.3% of Dorel Industries shares are owned by insiders. Comparatively, 1.3% of Sonos shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and target prices for Dorel Industries and Sonos, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dorel Industries | 0 | 1 | 0 | 0 | 2.00 |
| Sonos | 0 | 3 | 2 | 0 | 2.40 |
Sonos has a consensus price target of $20.00, suggesting a potential upside of 12.87%. Given Sonos’ stronger consensus rating and higher possible upside, analysts clearly believe Sonos is more favorable than Dorel Industries.
Profitability
This table compares Dorel Industries and Sonos’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Dorel Industries | -12.73% | N/A | -11.89% |
| Sonos | 3.82% | 19.10% | 8.67% |
Summary
Sonos beats Dorel Industries on 12 of the 13 factors compared between the two stocks.
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.
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.
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