Dolby Laboratories (NYSE:DLB – Get Free Report) and Koss (NASDAQ:KOSS – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, institutional ownership, earnings, risk and profitability.
Institutional and Insider Ownership
58.6% of Dolby Laboratories shares are held by institutional investors. Comparatively, 6.2% of Koss shares are held by institutional investors. 38.4% of Dolby Laboratories shares are held by company insiders. Comparatively, 46.7% of Koss shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
Dolby Laboratories has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, Koss has a beta of -1.68, meaning that its share price is 268% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dolby Laboratories | 0 | 0 | 3 | 0 | 3.00 |
| Koss | 0 | 0 | 0 | 0 | 0.00 |
Dolby Laboratories currently has a consensus target price of $102.3333, indicating a potential upside of 42.60%. Given Dolby Laboratories’ stronger consensus rating and higher probable upside, equities analysts clearly believe Dolby Laboratories is more favorable than Koss.
Profitability
This table compares Dolby Laboratories and Koss’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Dolby Laboratories | 19.62% | 11.52% | 9.26% |
| Koss | -6.06% | -2.44% | -2.01% |
Earnings and Valuation
This table compares Dolby Laboratories and Koss”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Dolby Laboratories | $1.27 billion | 5.40 | $261.83 million | $2.73 | 26.29 |
| Koss | $12.27 million | 4.07 | -$950,000.00 | ($0.08) | -66.63 |
Dolby Laboratories has higher revenue and earnings than Koss. Koss is trading at a lower price-to-earnings ratio than Dolby Laboratories, indicating that it is currently the more affordable of the two stocks.
Summary
Dolby Laboratories beats Koss on 13 of the 14 factors compared between the two stocks.
About Dolby Laboratories
Dolby Laboratories, Inc. creates audio and imaging technologies that transform entertainment at the cinema, DTV transmissions and devices, mobile devices, OTT video and music services, home entertainment devices, and automobiles. The company develops and licenses its audio technologies, such as AAC & HE-AAC, a digital audio codec solution used for a range of media applications; AVC, a digital video codec with high bandwidth efficiency used in various media devices; Dolby AC-4, a digital audio coding technology that delivers new audio experiences to a range of playback devices; and Dolby Atmos technology for cinema and various media devices. Its audio technologies also include DD, a digital audio coding technology that provides multichannel sound to applications; DD+, a digital audio coding technology that offers audio transmission for a range of media applications and devices; Dolby TrueHD, a digital audio coding technology providing encoding for media application; Dolby Vision, an imaging technology for cinema and media devices; and HEVC, a digital video codec with high bandwidth efficiency for media devices. In addition, the company offers digital cinema servers, cinema processors, amplifiers, loudspeakers, and audio and imaging hardware and software products for the cinema, television, broadcast, communication, and entertainment industries. Further, it provides 3-D glasses and kits; and various 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 Koss
Koss Corporation, together with its subsidiaries, engages in the design, manufacture, and sale of stereo headphones and related accessories in the United States, the Czech Republic, Sweden, Canada, Korea, Republic of Belgium, Malaysia, and internationally. It offers high-fidelity headphones, wireless bluetooth headphones, wireless bluetooth speakers, computer headsets, telecommunications headsets, and active noise canceling headphones. The company sells its products through distributors, international distributors, audio specialty stores, the internet, national retailers, grocery stores, electronics retailers, and prisons under the Koss name, as well as private label. It sells its products to distributors for resale to school systems, as well as directly to other manufacturers. The company markets through domestic retail outlets and numerous retailers. It exports its products. Koss Corporation was founded in 1953 and is headquartered in Milwaukee, Wisconsin.
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