Dolby Laboratories (NYSE: DLB) is one of 25 public companies in the “Entertainment Production” industry, but how does it weigh in compared to its rivals? We will compare Dolby Laboratories to related companies based off the strength of its earnings, risk, valuation, analyst recommendations, institutional ownership, profitability and dividends.

Volatility & Risk

Dolby Laboratories has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, Dolby Laboratories’ rivals have a beta of 0.91, indicating that their average stock price is 9% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Dolby Laboratories and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dolby Laboratories 0 2 1 0 2.33
Dolby Laboratories Competitors 141 527 1231 31 2.60

Dolby Laboratories currently has a consensus target price of $52.83, suggesting a potential upside of 4.64%. All “Entertainment Production” companies have a potential upside of 19.64%. Given Dolby Laboratories’ rivals stronger consensus rating and higher probable upside, analysts plainly believe Dolby Laboratories has less favorable growth aspects than its rivals.

Valuation and Earnings

This table compares Dolby Laboratories and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Dolby Laboratories $1.07 billion $340.22 million 25.76
Dolby Laboratories Competitors $6.27 billion $1.49 billion 39.94

Dolby Laboratories’ rivals have higher revenue and earnings than Dolby Laboratories. Dolby Laboratories is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently the more affordable than other companies in its industry.

Insider and Institutional Ownership

51.9% of Dolby Laboratories shares are owned by institutional investors. Comparatively, 46.5% of shares of all “Entertainment Production” companies are owned by institutional investors. 43.8% of Dolby Laboratories shares are owned by insiders. Comparatively, 27.7% of shares of all “Entertainment Production” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Dolby Laboratories pays an annual dividend of $0.56 per share and has a dividend yield of 1.1%. Dolby Laboratories pays out 28.6% of its earnings in the form of a dividend. As a group, “Entertainment Production” companies pay a dividend yield of 1.4% and pay out 29.9% of their earnings in the form of a dividend. Dolby Laboratories has increased its dividend for 2 consecutive years.

Profitability

This table compares Dolby Laboratories and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dolby Laboratories 19.02% 10.25% 8.78%
Dolby Laboratories Competitors 4.62% 11.46% 4.02%

Summary

Dolby Laboratories rivals beat Dolby Laboratories on 10 of the 15 factors compared.

Dolby Laboratories Company Profile

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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