Critical Contrast: Provision (OTCMKTS:PVHO) vs. Sonos (OTCMKTS:SONO)

Provision (OTCMKTS:PVHO) and Sonos (NASDAQ:SONO) are both small-cap business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Valuation & Earnings

This table compares Provision and Sonos’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Provision $1.70 million 0.96 -$7.32 million N/A N/A
Sonos $1.14 billion 1.05 -$15.60 million ($0.24) -47.38

Provision has higher earnings, but lower revenue than Sonos.

Profitability

This table compares Provision and Sonos’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Provision N/A N/A N/A
Sonos 0.85% 6.88% 2.51%

Analyst Recommendations

This is a breakdown of current recommendations for Provision and Sonos, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Provision 0 0 0 0 N/A
Sonos 0 2 5 0 2.71

Sonos has a consensus price target of $20.86, indicating a potential upside of 83.44%. Given Sonos’ higher probable upside, analysts plainly believe Sonos is more favorable than Provision.

Insider & Institutional Ownership

58.3% of Sonos shares are owned by institutional investors. 15.4% of Sonos shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Sonos beats Provision on 9 of the 10 factors compared between the two stocks.

Provision Company Profile

Provision Holding, Inc. focuses on the development and distribution of three-dimensional (3D) holographic interactive video displays primarily for advertising and product merchandising markets. The company's products include HoloVision displays and 3D Savings Center kiosks that offer advertisers and customers to reach captive audience in grocery stores, malls, convenience stores, gas stations, banks, and other retail locations. Its HoloVision displays are also used in education, medical, entertainment, and consumer applications. Provision Holding, Inc. has a strategic alliance agreement with Coinstar, LLC to develop and integrate HoloVision display systems into Coinstar's kiosks. The company is headquartered in Chatsworth, California.

Sonos Company Profile

Sonos, Inc., together with its subsidiaries, designs, develops, manufactures, and sells multi-room audio products in the United States and internationally. It provides wireless speakers, home theater speakers, and components. The company offers its products through third-party retail stores, including custom installers of home audio systems; and e-commerce retailers, as well as through its sonos.com Website. The company was formerly known as Rincon Audio, Inc. and changed its name to Sonos, Inc. in May 2004. Sonos, Inc. was founded in 2002 and is headquartered in Santa Barbara, California.

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