{"id":497716,"date":"2021-12-04T04:23:48","date_gmt":"2021-12-04T09:23:48","guid":{"rendered":"https:\/\/financhill.com\/blog\/?p=497716"},"modified":"2021-11-14T11:53:16","modified_gmt":"2021-11-14T16:53:16","slug":"sony-stock-vs-vizio","status":"publish","type":"post","link":"https:\/\/financhill.com\/blog\/investing\/sony-stock-vs-vizio","title":{"rendered":"Sony Stock vs Vizio: Which Is Better?"},"content":{"rendered":"<p><strong>Vizio Holding Corp (<a href=\"https:\/\/financhill.com\/search\/valuation\/VZIO\">NYSE:VZIO<\/a>)<\/strong> is an Irvine, California-based consumer electronics brand that went public in a March 2021 IPO. The company\u2019s TVs and sound bars are very affordable, which is a stark contrast to the pricing policy of good sold by <strong>Sony Group Corp (<a href=\"https:\/\/financhill.com\/search\/valuation\/SONY\">NYSE:SONY<\/a>).<\/strong><\/p>\n<p>VZIO share price is also more affordable than its high-end competitor, but which is the better buy between Sony stock vs Vizio?<\/p>\n<p><iframe loading=\"lazy\" style=\"margin: 0 auto; border: 0;\" src=\"https:\/\/financhill.com\/widget\/charts\/VZIO?periodGrouping=daily&amp;defaultSeries=candlesticks\" width=\"720\" height=\"400\" frameborder=\"0\" scrolling=\"no\" seamless=\"\"><\/iframe><\/p>\n<p>Both companies sell a wide variety of products while also providing data and advertising. Sony has a much larger pipeline however, plus it\u2019s a globally recognized, well-respected brand that is renowned for selling high quality goods and electronics.<\/p>\n<p>Vizio is a more affordable distributor which is helping it to become a household name. Having risen to a valuation north of $4 billion, it&#8217;s still a minnow in the ocean of whales such as Sony, though potentially that means it has more upside potential. After all a 50% upside in Vizio translates to $2 billion while for Sony a $75 billion is required to generate the same percentage return for investors.<\/p>\n<h2>Is Vizio A Reliable Brand?<\/h2>\n<p>Vizio provides trusted products at affordable prices. Consumer Affairs <a href=\"https:\/\/www.consumeraffairs.com\/home_electronics\/vizio.html\" target=\"_blank\" rel=\"noopener\">rates the brand<\/a> at 3.3 out of 5 with over 500 ratings, and the reviews are mostly positive.<\/p>\n<p>The company has been around since October 2002 and was a <a href=\"https:\/\/www.consumerreports.org\/tvs\/hisense-vizio-tvs-lose-cr-recommendation-over-reliability-issues-a9492902364\/\" target=\"_blank\" rel=\"noopener\">Consumer Reports recommendation<\/a> until 2019. Its TVs are <a href=\"https:\/\/www.consumerreports.org\/tvs\/why-it-doesnt-always-pay-to-buy-a-cheap-tv-a3770018556\/\" target=\"_blank\" rel=\"noopener\">rated between 55 and 60<\/a> on the organization\u2019s scale of 1-100.<\/p>\n<p>This positions Vizio as an average brand. That hasn&#8217;t hurt its market share. The company holds about <a href=\"https:\/\/www.statista.com\/statistics\/782217\/smart-tv-share-by-oem-in-the-us\/#:~:text=In%202020%2C%20Samsung%20remained%20the,13%20percent%20market%20share%2C%20respectively.\" target=\"_blank\" rel=\"noopener\">13 percent<\/a> of the smart TV market, and this market is elbowing in on the streaming stick market.<\/p>\n<p>Its SmartCast operating system is perfectly positioned to benefit from the trends in TV usage and competes with the likes of <strong>Roku (<a href=\"https:\/\/financhill.com\/blog\/investing\/roku-stock-forecast\">NASDAQ:ROKU<\/a>)<\/strong>, Fire TV, and Chromecast. But it also faces competition from Sony.<\/p>\n<p><iframe loading=\"lazy\" style=\"margin: 0 auto; border: 0;\" src=\"https:\/\/financhill.com\/widget\/charts\/ROKU?periodGrouping=daily&amp;defaultSeries=candlesticks\" width=\"720\" height=\"400\" frameborder=\"0\" scrolling=\"no\" seamless=\"\"><\/iframe><\/p>\n<h2>Sony Corp Has An Ecosystem<\/h2>\n<p>Sony Group Corporation is a Japanese conglomerate that includes divisions for video games, music, moves, and both consumer and professional electronics. It\u2019s the largest music publisher, image sensor manufacturer, best-selling home video game console, and premium television maker.<\/p>\n<p>The media and technology giant is known for creating high-quality products that come with a premium price tag. It\u2019s also known for creating its own ecosystem much like <strong>Apple (<a href=\"https:\/\/financhill.com\/search\/valuation\/AAPL\">NASDAQ:AAPL<\/a>)<\/strong> \u2013 the Sony PlayStation has its own proprietary OS, store, services, and content.<\/p>\n<p><iframe loading=\"lazy\" style=\"margin: 0 auto; border: 0;\" src=\"https:\/\/financhill.com\/widget\/charts\/AAPL?periodGrouping=daily&amp;defaultSeries=candlesticks\" width=\"720\" height=\"400\" frameborder=\"0\" scrolling=\"no\" seamless=\"\"><\/iframe><\/p>\n<p>Sony is valued at a market capitalization of well over $150 billion, making it one of the most valuable companies in the world. However, as a foreign company listed on the Tokyo Stock Exchange, American investors are buying American depositary receipts.<\/p>\n<h2>Sony Digital Strategy Is Paying Off But&#8230;&nbsp;<\/h2>\n<p>Although it\u2019s a major play in consumer electronics, Sony\u2019s strategy is focused heavily on streaming during the current console generation. <strong>Digital services like PS Plus and PS Now are a major part of the company\u2019s overall strategy for the 2020s.<\/strong><\/p>\n<p>While Sony&#8217;s digital strategy has been paying off, the most recent <a href=\"https:\/\/www.sony.com\/en\/SonyInfo\/IR\/library\/Sony_Quarterly_Securities_Report_2021Q2.pdf\" target=\"_blank\" rel=\"noopener\">SEC quarterly filing<\/a> dove into the firm&#8217;s risk factors. For example, <strong>Sony&#8217;s PlayStation 5 launch, while successful, faced shortages throughout its supply chain due to manufacturing shutdowns and silicon chip shortages.<\/strong><\/p>\n<p>Despite these challenges, the company grew <a href=\"https:\/\/www.sony.com\/en\/SonyInfo\/IR\/\" target=\"_blank\" rel=\"noopener\">year-over-year sales<\/a> by 13 percent in its most recent quarter. This was fueled by over-20-percent increases in both its Game and Network Services and Electronics Products and Solutions divisions.<\/p>\n<p>But with the next generation already in full swing, some wonder if Sony may have peaked for the time being.<\/p>\n<h2>Vizio Corp Financials Are So-So<\/h2>\n<p>Vizio generated <a href=\"https:\/\/investors.vizio.com\/financials\/quarterly-results\/default.aspx\" target=\"_blank\" rel=\"noopener\">over $906 million<\/a> in the first half of the year, an increase of $180.81 million, or 24.9 percent from the prior year\u2019s tally. That translated to a gross profit of $166.204 million for the period, although it still ended with a $10.66 million net loss.<\/p>\n<p>The TV and soundbar maker held assets of $763.82 million compared to $460.63 million in debt and liabilities, making for a healthy balance sheet as the company increased its cash on hand by over $365 million, more than double its take by the end of last year.<\/p>\n<p>Vizio\u2019s 2022 collection is on its way, and the holiday season sales and CES 2022 buzz should boost the top line. It has a large user base over 11 million smart TVs with dynamic ad insertion, creating a smart platform to generate ad revenue.<\/p>\n<h2>Is Vizio Stock a Good Buy?<\/h2>\n<p>Vizio has an average <a href=\"https:\/\/financhill.com\/blog\/investing\/is-vizio-stock-a-buy\">consensus rating of buy;<\/a>&nbsp;it\u2019s relatively cheap compared to the rest of the market.<\/p>\n<p>It has a potential upside of over 70 percent, and much of this depends on the success of content services. The modern smart TV market is a sleeper hit &#8211; we saw with <a href=\"https:\/\/financhill.com\/stocks\/nasdaq\/roku\">Roku<\/a> monetizing its platform using strategically targeted ads.<\/p>\n<p>Although market share is shrinking due to more entrants, Vizio stock is generally considered a good buy under a $5 billion valuation.<\/p>\n<p>Some estimates place the VZIO market cap almost 40% higher at around $30 per share.<\/p>\n<p><iframe style=\"width: 100%; height: 418px; margin: 0 auto; border: 0;\" src=\"https:\/\/financhill.com\/valuation\/VZIO\" frameborder=\"0\" scrolling=\"no\" seamless=\"\"><\/iframe><\/p>\n<h2>Is It Too Late to Invest in Sony?<\/h2>\n<p>It may be a large global conglomerate and market leader, but there\u2019s still room for Sony to grow. The company\u2019s price-to-earnings of 13 is a steal compared to the eye-popping 70 for Vizio.<\/p>\n<p>The gaming division continues to outsell competition from <a href=\"https:\/\/financhill.com\/blog\/investing\/microsoft-vs-sony-stock\">Microsoft and Nintendo<\/a>, and its partnerships with companies like <strong>Peloton Interactive (<a href=\"https:\/\/financhill.com\/search\/valuation\/PTON\">NASDAQ:PTON<\/a>)<\/strong> help to maintain the moat for its streaming services.<\/p>\n<p>Don\u2019t discount the growth potential of this never-sleeping giant.<\/p>\n<p><iframe loading=\"lazy\" style=\"margin: 0 auto; border: 0;\" src=\"https:\/\/financhill.com\/widget\/charts\/PTON?periodGrouping=daily&amp;defaultSeries=candlesticks\" width=\"720\" height=\"400\" frameborder=\"0\" scrolling=\"no\" seamless=\"\"><\/iframe><\/p>\n<h2>Vizio Stock Vs Sony: The Bottom Line<\/h2>\n<p>Vizio and Sony operate on two different ends of the consumer electronics market. Vizio is a smart TV pioneer that is building a growing user base thanks to enticing, low-priced products. It can afford to keep costs competitive because advertising revenues are also generated on the back-end.<\/p>\n<p>On the other end of the spectrum, Sony sell high-end products and continues to remain a market leader in many of its divisions. Both stocks are trading at a discounted to fair value based on discounted cash flow forecast analyses but Vizio has the higher upside.<\/p>\n<p>The bottom line is each brand has the potential to outperform the market in general over the next year but Vizio has the more alluring payoff if it executes well.<\/p>\n<p><iframe style=\"width: 100%; height: 418px; margin: 0 auto; border: 0;\" src=\"https:\/\/financhill.com\/valuation\/SONY\" frameborder=\"0\" scrolling=\"no\" seamless=\"\"><\/iframe><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Vizio Holding Corp (NYSE:VZIO) is an Irvine, California-based consumer electronics brand that went public in a March 2021 IPO. The company\u2019s TVs and sound bars are very affordable, which is a stark contrast to the pricing policy of good sold by Sony Group Corp (NYSE:SONY). VZIO share price is also more affordable than its high-end [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":497721,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[22],"tags":[],"class_list":["post-497716","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/financhill.com\/blog\/wp-content\/uploads\/2021\/12\/Untitled-design-2021-11-14T093235.429.jpg","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p9czeV-25tG","_links":{"self":[{"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/posts\/497716","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/comments?post=497716"}],"version-history":[{"count":17,"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/posts\/497716\/revisions"}],"predecessor-version":[{"id":497739,"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/posts\/497716\/revisions\/497739"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/media\/497721"}],"wp:attachment":[{"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/media?parent=497716"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/categories?post=497716"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financhill.com\/blog\/wp-json\/wp\/v2\/tags?post=497716"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}