Cinedigm Corp (NASDAQ: CIDM) and Dolby Laboratories (NYSE:DLB) are both business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, valuation, profitabiliy, dividends and earnings.

Profitability

This table compares Cinedigm Corp and Dolby Laboratories’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cinedigm Corp -16.74% N/A -8.69%
Dolby Laboratories 18.34% 9.91% 8.49%

Dividends

Dolby Laboratories pays an annual dividend of $0.56 per share and has a dividend yield of 1.1%. Cinedigm Corp does not pay a dividend. Dolby Laboratories pays out 30.3% of its earnings in the form of a dividend. Dolby Laboratories has increased its dividend for 2 consecutive years.

Risk and Volatility

Cinedigm Corp has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500. Comparatively, Dolby Laboratories has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.

Institutional & Insider Ownership

12.2% of Cinedigm Corp shares are held by institutional investors. Comparatively, 50.7% of Dolby Laboratories shares are held by institutional investors. 27.3% of Cinedigm Corp shares are held by insiders. Comparatively, 43.8% of Dolby Laboratories shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Cinedigm Corp and Dolby Laboratories’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cinedigm Corp $90.39 million 0.23 $40.28 million ($2.00) -0.84
Dolby Laboratories $1.04 billion 4.96 $325.90 million $1.85 27.16

Dolby Laboratories has higher revenue and earnings than Cinedigm Corp. Cinedigm Corp is trading at a lower price-to-earnings ratio than Dolby Laboratories, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Cinedigm Corp and Dolby Laboratories, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cinedigm Corp 0 0 0 0 N/A
Dolby Laboratories 0 3 2 0 2.40

Dolby Laboratories has a consensus price target of $52.75, indicating a potential upside of 4.98%. Given Dolby Laboratories’ higher possible upside, analysts clearly believe Dolby Laboratories is more favorable than Cinedigm Corp.

Summary

Dolby Laboratories beats Cinedigm Corp on 14 of the 15 factors compared between the two stocks.

About Cinedigm Corp

Cinedigm Corp. is a distributor and aggregator of independent movie, television and other short form content managing a library of distribution rights to a range of titles and episodes released across various platforms. The Company’s segments include the first digital cinema deployment (Phase I Deployment), the second digital cinema deployment (Phase II Deployment), digital cinema services (Services), and media content and entertainment group (Content & Entertainment). The Phase I Deployment and Phase II Deployment segments are the non-recourse, financing vehicles and administrators for its digital cinema equipment (the Systems) installed in movie theatres. The Services segment provides fee-based support to over 12,000 movie screens in its Phase I Deployment and Phase II Deployment segments. Its Content & Entertainment segment is engaged in ancillary market aggregation and distribution of entertainment content, and branded and curated over-the-top (OTT) digital network business.

About Dolby Laboratories

Dolby Laboratories, Inc. designs and manufactures audio and imaging products for the cinema, television, broadcast and entertainment industries. Its products for cinema include Digital Cinema Servers and Cinema Audio Products, and broadcast and other include Dolby Conference Phone and Other Products. It offers services to support theatrical and television production for cinema exhibition, broadcast and home entertainment, including equipment training and maintenance, mixing room alignment and equalization, as well as audio, color and light image calibration. Its technologies include Advanced Audio Coding and High Efficiency Advanced Audio Coding, Dolby AC-4, Dolby Atmos, Dolby Digital, Dolby Digital Plus, Dolby TrueHD, Dolby Vision, Dolby Voice and High Efficiency Video Coding. It distributes its products in over 80 countries. Its technologies are incorporated in offerings in various end markets, such as the broadcast, Personal Computer, mobile, consumer electronics and other markets.

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