Sonos (NASDAQ:SONO) versus Howden Joinery Group (OTCMKTS:HWDJF) Critical Survey

Sonos (NASDAQ:SONO) and Howden Joinery Group (OTCMKTS:HWDJF) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Sonos and Howden Joinery Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sonos	0	3	2	0	2.40
Howden Joinery Group	0	1	1	0	2.50

Sonos currently has a consensus target price of $20.00, suggesting a potential upside of 36.43%. Given Sonos’ higher probable upside, analysts plainly believe Sonos is more favorable than Howden Joinery Group.

Profitability

This table compares Sonos and Howden Joinery Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sonos	3.82%	19.10%	8.67%
Howden Joinery Group	N/A	N/A	N/A

Earnings & Valuation

This table compares Sonos and Howden Joinery Group”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	1.20	-$61.14 million	$0.45	32.58
Howden Joinery Group	N/A	N/A	N/A	N/A	N/A

Howden Joinery Group has lower revenue, but higher earnings than Sonos.

Insider and Institutional Ownership

85.8% of Sonos shares are owned by institutional investors. Comparatively, 55.9% of Howden Joinery Group shares are owned by institutional investors. 1.3% of Sonos shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Sonos beats Howden Joinery Group on 8 of the 9 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 Howden Joinery Group

Howden Joinery Group Plc supplies various kitchen, joinery, and hardware products in the United Kingdom, France, Belgium, and the Republic of Ireland. The company’s product portfolio worktops, sinks and taps, flooring, appliances, and handles; internal and external doors, including fire doors, flooring, stair parts, and general joinery items; and cooking, cleaning, and cooling appliances. Howden Joinery Group Plc was incorporated in 1987 and is based in London, the United Kingdom.