Dolby Laboratories (NYSE:DLB) and Patriot Scientific (OTCMKTS:PTSC) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.
Risk and Volatility
Dolby Laboratories has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, Patriot Scientific has a beta of -0.33, indicating that its stock price is 133% less volatile than the S&P 500.
This table compares Dolby Laboratories and Patriot Scientific’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Dolby Laboratories||$1.17 billion||5.97||$122.24 million||$2.40||28.14|
|Patriot Scientific||N/A||N/A||-$1.20 million||N/A||N/A|
Dolby Laboratories has higher revenue and earnings than Patriot Scientific.
Institutional and Insider Ownership
57.4% of Dolby Laboratories shares are owned by institutional investors. 43.8% of Dolby Laboratories shares are owned by company insiders. Comparatively, 1.0% of Patriot Scientific shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This table compares Dolby Laboratories and Patriot Scientific’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Dolby Laboratories pays an annual dividend of $0.76 per share and has a dividend yield of 1.1%. Patriot Scientific does not pay a dividend. Dolby Laboratories pays out 31.7% of its earnings in the form of a dividend. Dolby Laboratories has raised its dividend for 3 consecutive years.
This is a breakdown of current ratings and target prices for Dolby Laboratories and Patriot Scientific, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Dolby Laboratories currently has a consensus price target of $72.75, suggesting a potential upside of 7.71%. Given Dolby Laboratories’ higher possible upside, equities analysts clearly believe Dolby Laboratories is more favorable than Patriot Scientific.
Dolby Laboratories beats Patriot Scientific on 12 of the 13 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.
About Patriot Scientific
Patriot Scientific Corporation focuses on commercializing microprocessor technologies through broad and open licensing. The company was founded in 1987 and is based in Carlsbad, California.
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