Dolby Laboratories (DLB) versus Rentrak (RENT) Critical Survey

Dolby Laboratories (NYSE: DLB) and Rentrak (NASDAQ:RENT) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, dividends, risk, profitability and institutional ownership.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Dolby Laboratories $1.07 billion 4.64 $340.22 million $1.96 24.70
Rentrak N/A N/A N/A N/A N/A

Dolby Laboratories has higher revenue and earnings than Rentrak.

Institutional and Insider Ownership

50.4% of Dolby Laboratories shares are owned by institutional investors. 43.8% of Dolby Laboratories shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Dolby Laboratories and Rentrak, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dolby Laboratories 0 2 1 0 2.33
Rentrak 0 0 0 0 N/A

Dolby Laboratories currently has a consensus price target of $52.83, suggesting a potential upside of 9.11%. Given Dolby Laboratories’ higher probable upside, equities research analysts plainly believe Dolby Laboratories is more favorable than Rentrak.

Dividends

Dolby Laboratories pays an annual dividend of $0.56 per share and has a dividend yield of 1.2%. Rentrak does not pay a dividend. Dolby Laboratories pays out 28.6% of its earnings in the form of a dividend. Rentrak has raised its dividend for 2 consecutive years.

Profitability

This table compares Dolby Laboratories and Rentrak’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dolby Laboratories 19.02% 10.25% 8.78%
Rentrak 3.80% 2.04% 1.75%

Summary

Dolby Laboratories beats Rentrak on 9 of the 11 factors compared between the two stocks.

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.

About Rentrak

Rentrak Corporation is a media measurement and consumer targeting company serving the entertainment, television (TV), video and advertising industries. The Company’s Software as a Service (SaaS) technology merges television viewership information from televisions and devices with consumer behavior and purchase information across multiple platforms, devices and distribution channels. The Company’s product offerings, which are referred as Essentials include TV Everywhere, which includes TV Essentials and StationView Essentials; Movies Everywhere, which includes Box Office Essentials, International Box Office Essentials, PostTrak and PreAct; OnDemand Everywhere, which includes OnDemand Essentials, Digital Download Essentials, Multiscreen Essentials and other Over the Top measurement tools and related products, and Other Services, which includes Studio Revenue Share Essentials (SRSE) and other products relating to measurement of physical content in the home video rental industry.

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