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

Institutional & Insider Ownership

56.2% of Dolby Laboratories shares are held by institutional investors. Comparatively, 2.5% of MGT Capital Investments shares are held by institutional investors. 40.2% of Dolby Laboratories shares are held by company insiders. Comparatively, 6.2% of MGT Capital Investments shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Dolby Laboratories and MGT Capital Investments’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dolby Laboratories $1.17 billion 5.64 $122.24 million $2.40 26.65
MGT Capital Investments $3.13 million 2.06 -$50.43 million N/A N/A

Dolby Laboratories has higher revenue and earnings than MGT Capital Investments.

Analyst Ratings

This is a summary of current recommendations and price targets for Dolby Laboratories and MGT Capital Investments, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dolby Laboratories 0 2 3 0 2.60
MGT Capital Investments 0 0 0 0 N/A

Dolby Laboratories presently has a consensus target price of $73.75, indicating a potential upside of 15.31%. Given Dolby Laboratories’ higher probable upside, equities analysts clearly believe Dolby Laboratories is more favorable than MGT Capital Investments.

Volatility & Risk

Dolby Laboratories has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, MGT Capital Investments has a beta of 3.36, indicating that its share price is 236% more volatile than the S&P 500.

Dividends

Dolby Laboratories pays an annual dividend of $0.76 per share and has a dividend yield of 1.2%. MGT Capital Investments does not pay a dividend. Dolby Laboratories pays out 31.7% of its earnings in the form of a dividend. Dolby Laboratories has increased its dividend for 4 consecutive years.

Profitability

This table compares Dolby Laboratories and MGT Capital Investments’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dolby Laboratories 10.43% 12.72% 10.46%
MGT Capital Investments -1,101.73% -579.46% -393.64%

Summary

Dolby Laboratories beats MGT Capital Investments on 12 of the 14 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, such as AAC & HE-AAC, a digital audio codec solution used for TVs, set-top boxes (STBs), personal computers (PCs), gaming consoles, mobile devices, and digital radio; AVC, a digital video codec with high bandwidth efficiency used in media devices; Dolby AC-4, an audio coding technology that delivers new audio experiences to a range of playback devices; and Dolby Atmos technology for home theaters, cinemas, device speakers, mobile devices, and headphones. Its audio technologies also include Dolby Digital, a digital audio coding technology that provides multichannel sound to applications; Dolby Digital Plus, a digital audio coding technology that offers audio transmission for a range of media applications; Dolby TrueHD, a digital audio coding technology providing encoding for Blu-ray discs and home theaters; Dolby Vision, an imaging technology for cinema and media devices; Dolby Voice, an audio conferencing technology; and HEVC, a digital video codec with high bandwidth efficiency to support for media devices. In addition, the company designs and manufactures digital cinema servers, cinema processors, amplifiers, loudspeakers, hardware components, video conferencing solutions, and other products for the cinema, television, broadcast, and entertainment industries. Further, it offers 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 MGT Capital Investments

MGT Capital Investments, Inc. engages in bitcoin mining operations in the Wenatchee Valley area of central Washington. At March 30, 2018, it owned and operated approximately 500 miners located in a leased facility in Quincy, Washington; and 4,200 miners located in a leased facility in Sweden, as well as operated approximately 2,100 miners in the Sweden location. The company was founded in 1979 and is headquartered in Durham, North Carolina.

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