Critical Review: Dolby Laboratories (DLB) and Its Rivals
Dolby Laboratories (NYSE: DLB) is one of 25 public companies in the “Entertainment Production” industry, but how does it weigh in compared to its peers? We will compare Dolby Laboratories to related companies based on the strength of its institutional ownership, analyst recommendations, valuation, risk, earnings, profitability and dividends.
Valuation & Earnings
This table compares Dolby Laboratories and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Dolby Laboratories||$1.07 billion||$340.22 million||29.67|
|Dolby Laboratories Competitors||$6.27 billion||$1.49 billion||43.05|
Dolby Laboratories’ peers have higher revenue and earnings than Dolby Laboratories. Dolby Laboratories is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
This is a breakdown of recent recommendations for Dolby Laboratories and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Dolby Laboratories Competitors||142||539||1248||31||2.60|
Dolby Laboratories currently has a consensus target price of $56.88, indicating a potential downside of 2.21%. As a group, “Entertainment Production” companies have a potential upside of 13.56%. Given Dolby Laboratories’ peers higher probable upside, analysts plainly believe Dolby Laboratories has less favorable growth aspects than its peers.
Dolby Laboratories pays an annual dividend of $0.56 per share and has a dividend yield of 1.0%. 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 raised its dividend for 2 consecutive years.
Risk & Volatility
Dolby Laboratories has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, Dolby Laboratories’ peers have a beta of 0.92, indicating that their average stock price is 8% less volatile than the S&P 500.
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 company insiders. Comparatively, 27.7% of shares of all “Entertainment Production” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This table compares Dolby Laboratories and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Dolby Laboratories Competitors||2.73%||10.89%||3.54%|
Dolby Laboratories peers beat Dolby Laboratories on 9 of the 15 factors compared.
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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