Head to Head Comparison: TiVo (TIVO) versus Dolby Laboratories (DLB)

TiVo (NASDAQ: TIVO) and Dolby Laboratories (NYSE:DLB) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
TiVo -4.59% 4.02% 2.34%
Dolby Laboratories 6.06% 12.02% 10.15%

Analyst Ratings

This is a summary of recent recommendations and price targets for TiVo and Dolby Laboratories, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TiVo 0 0 5 0 3.00
Dolby Laboratories 0 3 1 0 2.25

TiVo presently has a consensus target price of $23.50, suggesting a potential upside of 61.51%. Dolby Laboratories has a consensus target price of $62.00, suggesting a potential downside of 8.20%. Given TiVo’s stronger consensus rating and higher possible upside, equities research analysts plainly believe TiVo is more favorable than Dolby Laboratories.

Dividends

TiVo pays an annual dividend of $0.72 per share and has a dividend yield of 4.9%. Dolby Laboratories pays an annual dividend of $0.64 per share and has a dividend yield of 0.9%. TiVo pays out 73.5% of its earnings in the form of a dividend. Dolby Laboratories pays out 29.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Dolby Laboratories has increased its dividend for 3 consecutive years.

Insider & Institutional Ownership

92.2% of TiVo shares are owned by institutional investors. Comparatively, 53.3% of Dolby Laboratories shares are owned by institutional investors. 3.5% of TiVo shares are owned by company insiders. Comparatively, 43.8% of Dolby Laboratories shares 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.

Valuation and Earnings

This table compares TiVo and Dolby Laboratories’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TiVo $826.46 million 2.16 -$37.95 million $0.98 14.85
Dolby Laboratories $1.08 billion 6.47 $201.80 million $2.20 30.70

Dolby Laboratories has higher revenue and earnings than TiVo. TiVo is trading at a lower price-to-earnings ratio than Dolby Laboratories, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

TiVo has a beta of -0.21, indicating that its stock price is 121% less volatile than the S&P 500. Comparatively, Dolby Laboratories has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500.

Summary

Dolby Laboratories beats TiVo on 12 of the 17 factors compared between the two stocks.

TiVo Company Profile

TiVo Corporation provides entertainment technology and audience insights worldwide. Its Intellectual Property Licensing segment licenses its patent portfolio to multi-channel video service providers, including cable, satellite, and Internet-protocol television providers; set-top box manufacturers; and interactive television software and program guide providers in the online, over-the-top (OTT) video, and mobile phone businesses, as well as consumer electronics (CE) manufacturers. This segment's portfolio of licensable technology patents covers various aspects of content discovery, digital video recorder (DVR), video-on-demand (VOD), OTT experiences, multi-screen functionality, and personalization, as well as interactive applications and advertising. The company's Product segment offers platform solutions, such as TiVo Service Platform, a cloud-based service that powers the TiVo Service client software, which operates on set-top boxes in consumer homes, as well as applications that operate on third party software platforms, such as iOS and Android; interactive program guide (IPG) solutions that allow service providers to customize elements of the IPGs for their customers, and to upgrade the features and services they can offer; CE Guides under the G-GUIDE and HTML Guide brands; and CubiTV and TiVo Lite middleware solutions. It also provides television, sports, movies, music, celebrities, books, and video games metadata; advanced search, recommendation, and conversation services; data and analytics solutions; Ad Optimizer and Promotion Optimizer, browser based software-as-a-service applications; operator and seamless insights applications; IPG advertising services; analog content protection technologies; and VCR Plus+, connected platform, and media recognition products. The company was formerly known as Rovi Corporation and changed its name to TiVo Corporation in September 2016. TiVo Corporation was founded in 1983 and is headquartered in San Carlos, California.

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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