Analyzing Dolby Laboratories (DLB) and The Competition

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 businesses based on the strength of its profitability, earnings, analyst recommendations, risk, dividends, institutional ownership and valuation.

Volatility and Risk

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

Dividends

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.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dolby Laboratories 0 2 3 0 2.60
Dolby Laboratories Competitors 142 531 1239 31 2.60

Dolby Laboratories currently has a consensus target price of $56.88, suggesting a potential downside of 2.43%. As a group, “Entertainment Production” companies have a potential upside of 21.47%. Given Dolby Laboratories’ rivals higher possible upside, analysts plainly believe Dolby Laboratories has less favorable growth aspects than its rivals.

Earnings and Valuation

This table compares Dolby Laboratories and its rivals revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Dolby Laboratories $1.07 billion $340.22 million 29.74
Dolby Laboratories Competitors $6.27 billion $1.49 billion 42.86

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 more affordable than other companies in its industry.

Insider & Institutional Ownership

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

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 9 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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