Critical Contrast: DTS (DTSI) versus Its Rivals

DTS (NASDAQ: DTSI) is one of 25 public companies in the “Entertainment Production” industry, but how does it weigh in compared to its peers? We will compare DTS to related businesses based on the strength of its profitability, valuation, institutional ownership, earnings, dividends, risk and analyst recommendations.

Risk and Volatility

DTS has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, DTS’s peers have a beta of 0.92, indicating that their average stock price is 8% less volatile than the S&P 500.

Profitability

This table compares DTS and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DTS 1.17% 1.04% 0.59%
DTS Competitors 2.67% 10.87% 3.53%

Valuation & Earnings

This table compares DTS and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
DTS N/A N/A -101.09
DTS Competitors $6.27 billion $1.49 billion 155.85

DTS’s peers have higher revenue and earnings than DTS. DTS 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.

Analyst Recommendations

This is a summary of current recommendations and price targets for DTS and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DTS 0 1 0 0 2.00
DTS Competitors 104 475 1229 24 2.64

DTS presently has a consensus price target of $42.50, indicating a potential upside of 0.09%. As a group, “Entertainment Production” companies have a potential upside of 12.83%. Given DTS’s peers stronger consensus rating and higher possible upside, analysts plainly believe DTS has less favorable growth aspects than its peers.

Insider and Institutional Ownership

98.1% of DTS shares are owned by institutional investors. Comparatively, 46.5% of shares of all “Entertainment Production” companies are owned by institutional investors. 11.3% of DTS 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 hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

DTS pays an annual dividend of $0.08 per share and has a dividend yield of 0.2%. DTS pays out -19.0% 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.

Summary

DTS peers beat DTS on 10 of the 13 factors compared.

DTS Company Profile

DTS, Inc. is an audio technology solutions provider for high-definition entertainment experiences. The Company’s audio solutions are designed to enable recording, delivery and playback of high-definition audio, and are included by licensee customers around the world into a range of consumer electronics devices, including televisions, personal computers (PCs), smartphones, tablets, digital media players (DMPs), set-top-boxes, soundbars, wireless speakers, video game consoles, Blu-ray Disc players, automotive audio systems, audio/video receivers (AVRs), digital versatile disc (DVD)-based products and home theater systems. In the wireless speakers market, the Company maintains a Play-Fi Certified original design manufacturer (ODM) Program. The Company’s market base includes Blu-ray, Home audio video (AV) and Automotive. The Blu-ray market includes standalone players, gaming devices and disc drives included in PCs.

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