Cinedigm Corp (NASDAQ: CIDM) and Dolby Laboratories (NYSE:DLB) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, risk, valuation and profitabiliy.
Institutional and Insider Ownership
10.1% of Cinedigm Corp shares are held by institutional investors. Comparatively, 50.7% of Dolby Laboratories shares are held by institutional investors. 27.3% of Cinedigm Corp shares are held by company insiders. Comparatively, 43.8% of Dolby Laboratories shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Dolby Laboratories pays an annual dividend of $0.56 per share and has a dividend yield of 1.1%. Cinedigm Corp does not pay a dividend. Dolby Laboratories pays out 28.6% of its earnings in the form of a dividend. Dolby Laboratories has raised its dividend for 2 consecutive years.
Volatility and Risk
Cinedigm Corp has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, Dolby Laboratories has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500.
Valuation and Earnings
This table compares Cinedigm Corp and Dolby Laboratories’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Cinedigm Corp||$90.39 million||0.20||$40.28 million||($2.00)||-0.74|
|Dolby Laboratories||$1.07 billion||4.90||$340.22 million||$1.96||26.10|
Dolby Laboratories has higher revenue and earnings than Cinedigm Corp. Cinedigm Corp 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 table compares Cinedigm Corp and Dolby Laboratories’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent recommendations and price targets for Cinedigm Corp and Dolby Laboratories, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Dolby Laboratories has a consensus price target of $52.83, suggesting a potential upside of 3.29%. Given Dolby Laboratories’ higher probable upside, analysts plainly believe Dolby Laboratories is more favorable than Cinedigm Corp.
Dolby Laboratories beats Cinedigm Corp on 14 of the 15 factors compared between the two stocks.
Cinedigm Corp Company Profile
Cinedigm Corp. is a distributor and aggregator of independent movie, television and other short form content managing a library of distribution rights to a range of titles and episodes released across various platforms. The Company’s segments include the first digital cinema deployment (Phase I Deployment), the second digital cinema deployment (Phase II Deployment), digital cinema services (Services), and media content and entertainment group (Content & Entertainment). The Phase I Deployment and Phase II Deployment segments are the non-recourse, financing vehicles and administrators for its digital cinema equipment (the Systems) installed in movie theatres. The Services segment provides fee-based support to over 12,000 movie screens in its Phase I Deployment and Phase II Deployment segments. Its Content & Entertainment segment is engaged in ancillary market aggregation and distribution of entertainment content, and branded and curated over-the-top (OTT) digital network business.
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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