Dolby Laboratories (NYSE:DLB) and Consensus Cloud Solutions (NASDAQ:CCSI) Head-To-Head Analysis

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

Profitability

This table compares Dolby Laboratories and Consensus Cloud Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dolby Laboratories	16.70%	11.08%	9.04%
Consensus Cloud Solutions	26.69%	502.63%	13.83%

Insider and Institutional Ownership

58.6% of Dolby Laboratories shares are owned by institutional investors. Comparatively, 93.9% of Consensus Cloud Solutions shares are owned by institutional investors. 37.9% of Dolby Laboratories shares are owned by company insiders. Comparatively, 3.6% of Consensus Cloud Solutions shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Dolby Laboratories has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, Consensus Cloud Solutions has a beta of 1.57, meaning that its share price is 57% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Dolby Laboratories and Consensus Cloud Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dolby Laboratories	1	1	2	0	2.25
Consensus Cloud Solutions	0	1	3	0	2.75

Dolby Laboratories currently has a consensus price target of $83.00, suggesting a potential upside of 34.94%. Consensus Cloud Solutions has a consensus price target of $41.67, suggesting a potential upside of 9.65%. Given Dolby Laboratories’ higher possible upside, research analysts plainly believe Dolby Laboratories is more favorable than Consensus Cloud Solutions.

Earnings and Valuation

This table compares Dolby Laboratories and Consensus Cloud Solutions”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dolby Laboratories	$1.35 billion	4.27	$255.02 million	$2.35	26.17
Consensus Cloud Solutions	$349.70 million	1.99	$84.53 million	$4.94	7.69

Dolby Laboratories has higher revenue and earnings than Consensus Cloud Solutions. Consensus Cloud Solutions 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

Consensus Cloud Solutions beats Dolby Laboratories on 8 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 Consensus Cloud Solutions

Consensus Cloud Solutions, Inc., together with its subsidiaries, provides information delivery services with a software-as-a-service platform worldwide. The company offers eFax Corporate, a digital cloud-fax technology; Unite, a single platform that allows the user to choose between various protocols to send and receive healthcare information and can integrate into an existing electronic health record system or stand-alone if no EHR is present. It also offers jsign, an electronic and digital signature solution; Conductor, an interface engine and interoperability platform that provides integration technology; Clarity that transforms unstructured documents into structured actionable data; and eFax, an online faxing solution, as well as other products under the MyFax, MetroFax, Sfax, and SRfax brands. In addition, the company provides ECFax, an Corporate eFax. It serves healthcare, government, financial services, law, and education sectors. Consensus Cloud Solutions, Inc. was incorporated in 2021 and is headquartered in Los Angeles, California.