Head to Head Analysis: TiVo (TIVO) vs. Dolby Laboratories (DLB)

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

Dividends

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TiVo pays an annual dividend of $0.72 per share and has a dividend yield of 5.2%. Dolby Laboratories pays an annual dividend of $0.64 per share and has a dividend yield of 1.0%. 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.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for TiVo and Dolby Laboratories, as reported by MarketBeat.

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 currently has a consensus target price of $23.50, suggesting a potential upside of 68.46%. Dolby Laboratories has a consensus target price of $62.00, suggesting a potential downside of 1.60%. Given TiVo’s stronger consensus rating and higher possible upside, equities research analysts plainly believe TiVo is more favorable than Dolby Laboratories.

Profitability

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%

Risk and Volatility

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

Earnings & Valuation

This table compares TiVo and Dolby Laboratories’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TiVo $826.46 million 2.08 -$37.95 million $0.98 14.23
Dolby Laboratories $1.08 billion 6.03 $201.80 million $2.20 28.64

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.

Institutional and Insider 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 large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

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

About TiVo

TiVo Corporation is engaged in offering media and entertainment products. The Company operates through two segments: Intellectual Property Licensing and Product. The Company’s Product segment includes a suite of component technologies that can be integrated into media service provider internally developed platforms or deployed as an integrated TiVo solution. The Company provides a range of intellectual property, cloud-based services and set-top box solutions that enable people to use online video, television, movies and music entertainment, including content discovery through device embedded and cloud-based interactive program guides (IPGs), digital video recorders (DVRs), natural language voice and text search, cloud-based recommendations services and its entertainment metadata (descriptive information, promotional images or other content that describes or relates to television shows, videos, movies, sports, music, books, games or other entertainment content).

About Dolby Laboratories

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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