Dolby Laboratories (NYSE: DLB) and TiVo (NASDAQ:TIVO) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.
Dolby Laboratories pays an annual dividend of $0.64 per share and has a dividend yield of 0.9%. TiVo pays an annual dividend of $0.72 per share and has a dividend yield of 4.9%. Dolby Laboratories pays out 29.1% of its earnings in the form of a dividend. TiVo pays out 73.5% 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 raised its dividend for 3 consecutive years.
Dolby Laboratories has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500. Comparatively, TiVo has a beta of -0.21, indicating that its stock price is 121% less volatile than the S&P 500.
This table compares Dolby Laboratories and TiVo’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Dolby Laboratories and TiVo’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Dolby Laboratories||$1.08 billion||6.50||$201.80 million||$2.20||30.85|
|TiVo||$826.46 million||2.19||-$37.95 million||$0.98||15.05|
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.
This is a breakdown of recent ratings for Dolby Laboratories and TiVo, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Dolby Laboratories currently has a consensus target price of $62.00, indicating a potential downside of 8.65%. TiVo has a consensus target price of $23.50, indicating a potential upside of 59.32%. Given TiVo’s stronger consensus rating and higher probable upside, analysts plainly believe TiVo is more favorable than Dolby Laboratories.
Insider and Institutional Ownership
53.3% of Dolby Laboratories shares are held by institutional investors. Comparatively, 92.2% of TiVo shares are held by institutional investors. 43.8% of Dolby Laboratories shares are held by insiders. Comparatively, 3.5% of TiVo shares 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.
Dolby Laboratories beats TiVo on 12 of the 17 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, including Dolby Digital Plus for digital television, mobile, and Internet-based services; Dolby Digital, a digital audio coding technology that provides multichannel sound in the home; and AAC & HE-AAC, an audio coding technologies used to broadcast, download, and streaming content. Its audio technologies also comprise Dolby TrueHD, an audio coding technology for content providers; Dolby Atmos, an object-oriented audio technology for home theaters, device speakers, and headphones; Dolby AC-4, a digital audio coding system that addresses the current and future needs of broadcast and streaming entertainment services; Dolby Voice, an audio conferencing technology; and Dolby Vision, an imaging technology for cinema, digital television, and other consumer devices, as well as HEVC, a digital video codec with higher bandwidth efficiency used in a range of media devices. In addition, the company designs and manufactures audio and imaging products, such as digital cinema servers, Dolby Cinema audio products, and other products for the film production, cinema, television, broadcast, and entertainment industries. Further, it offers an array of 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.
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.
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