Head to Head Comparison: DTS (DTSI) vs. Eros International (EROS)

DTS (NASDAQ: DTSI) and Eros International (NYSE:EROS) are both cyclical consumer goods & services companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, valuation, analyst recommendations, risk, earnings, dividends and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for DTS and Eros International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DTS 0 0 0 0 N/A
Eros International 0 0 2 0 3.00

Eros International has a consensus target price of $17.00, suggesting a potential upside of 54.55%. Given Eros International’s higher probable upside, analysts plainly believe Eros International is more favorable than DTS.

Profitability

This table compares DTS and Eros International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DTS 1.17% 1.04% 0.59%
Eros International 0.96% 0.22% 0.15%

Insider and Institutional Ownership

98.1% of DTS shares are held by institutional investors. Comparatively, 64.6% of Eros International shares are held by institutional investors. 11.3% of DTS shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares DTS and Eros International’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DTS N/A N/A N/A ($0.42) -101.24
Eros International $252.99 million 2.10 $3.80 million $0.04 275.07

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

Dividends

DTS pays an annual dividend of $0.08 per share and has a dividend yield of 0.2%. Eros International does not pay a dividend. DTS pays out -19.0% of its earnings in the form of a dividend.

Summary

DTS beats Eros International on 7 of the 11 factors compared between the two stocks.

About DTS

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.

About Eros International

Eros International Plc (Eros) is a holding company, which serves the Indian film entertainment industry. The Company’s principal activities include the acquisition, co-production and distribution of Indian films and related content. It distributes its film content through the distribution channels, such as theatrical, including multiplex chains and standalone theaters; television syndication, including satellite television broadcasting, cable television and terrestrial television; digital and ancillary, including music, inflight entertainment, home video, Internet protocol television (IPTV), video on demand (VOD), and Internet channels and Eros Now. As of March 31, 2016, its distribution network extends to over 50 countries, such as the United States, the United Kingdom, the Middle East, Germany, Poland, Russia, Romania, Indonesia and Arabic speaking countries. It conducts global operations through its Indian and international subsidiaries, including Eros International Media Limited.

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