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SONY or SONO: Which Is the Better Value Stock Right Now?

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Investors interested in Audio Video Production stocks are likely familiar with Sony (SONY - Free Report) and Sonos (SONO - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Right now, Sony is sporting a Zacks Rank of #2 (Buy), while Sonos has a Zacks Rank of #3 (Hold). This means that SONY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

SONY currently has a forward P/E ratio of 15.04, while SONO has a forward P/E of 85.78. We also note that SONY has a PEG ratio of 2.54. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SONO currently has a PEG ratio of 14.11.

Another notable valuation metric for SONY is its P/B ratio of 2.17. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, SONO has a P/B of 3.97.

Based on these metrics and many more, SONY holds a Value grade of B, while SONO has a Value grade of C.

SONY has seen stronger estimate revision activity and sports more attractive valuation metrics than SONO, so it seems like value investors will conclude that SONY is the superior option right now.

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