Dolby Laboratories (NYSE:DLB) and Fortel (OTCMKTS:ECGP) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, risk, institutional ownership, dividends and valuation.
This table compares Dolby Laboratories and Fortel’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings for Dolby Laboratories and Fortel, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Dolby Laboratories currently has a consensus price target of $77.33, indicating a potential upside of 20.21%.
Dolby Laboratories pays an annual dividend of $0.76 per share and has a dividend yield of 1.2%. Fortel does not pay a dividend. Dolby Laboratories pays out 31.7% of its earnings in the form of a dividend. Dolby Laboratories has raised its dividend for 4 consecutive years.
Institutional and Insider Ownership
56.2% of Dolby Laboratories shares are owned by institutional investors. 40.2% of Dolby Laboratories shares are owned by insiders. Comparatively, 4.2% of Fortel shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
Dolby Laboratories has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, Fortel has a beta of 27.49, suggesting that its stock price is 2,649% more volatile than the S&P 500.
Earnings & Valuation
This table compares Dolby Laboratories and Fortel’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Dolby Laboratories||$1.17 billion||5.63||$122.24 million||$2.40||26.80|
Dolby Laboratories has higher revenue and earnings than Fortel.
Dolby Laboratories beats Fortel on 9 of the 11 factors compared between the two stocks.
About Dolby Laboratories
Dolby Laboratories, Inc. creates audio and imaging technologies that transform entertainment and communications at the cinema, at home, at work, and on mobile devices. The company develops and licenses its audio technologies, such as AAC & HE-AAC, a digital audio codec solution used for TVs, set-top boxes (STBs), personal computers (PCs), gaming consoles, mobile devices, and digital radio; AVC, a digital video codec with high bandwidth efficiency used in media devices; Dolby AC-4, an audio coding technology that delivers new audio experiences to a range of playback devices; and Dolby Atmos technology for home theaters, cinemas, device speakers, mobile devices, and headphones. Its audio technologies also include Dolby Digital, a digital audio coding technology that provides multichannel sound to applications; Dolby Digital Plus, a digital audio coding technology that offers audio transmission for a range of media applications; Dolby TrueHD, a digital audio coding technology providing encoding for Blu-ray discs and home theaters; Dolby Vision, an imaging technology for cinema and media devices; Dolby Voice, an audio conferencing technology; and HEVC, a digital video codec with high bandwidth efficiency to support for media devices. In addition, the company designs and manufactures digital cinema servers, cinema processors, amplifiers, loudspeakers, hardware components, video conferencing solutions, and other products for the cinema, television, broadcast, and entertainment industries. Further, it offers various services to support theatrical and television production for cinema exhibition, broadcast, and home entertainment. The company serves film studios, content creators, post-production facilities, cinema operators, broadcasters, and video game designers. It sells its products directly to the end users, as well as through dealers and distributors worldwide. Dolby Laboratories, Inc. was founded in 1965 and is headquartered in San Francisco, California.
Fortel, Inc., formerly Envit Capital Group, Inc., together with its subsidiaries, provides alternative asset management and global private wealth management services. It operates as a holding company for financial entities, investor partnerships, and asset management subsidiaries. The Company operates in three segments: private alternative asset management, private wealth management and private equity. In June 2008, Envit Capital, LLC has acquired Fortel, Inc.
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