Twenty-First Century Fox (NASDAQ: FOX) and Dolby Laboratories (NYSE:DLB) are both mid-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.
Valuation & Earnings
This table compares Twenty-First Century Fox and Dolby Laboratories’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Twenty-First Century Fox||$28.50 billion||1.66||$7.11 billion||$1.59||16.03|
|Dolby Laboratories||$1.07 billion||5.65||$340.22 million||$1.96||30.08|
Twenty-First Century Fox has higher revenue and earnings than Dolby Laboratories. Twenty-First Century Fox is trading at a lower price-to-earnings ratio than Dolby Laboratories, indicating that it is currently the more affordable of the two stocks.
Twenty-First Century Fox pays an annual dividend of $0.36 per share and has a dividend yield of 1.4%. Dolby Laboratories pays an annual dividend of $0.56 per share and has a dividend yield of 0.9%. Twenty-First Century Fox pays out 22.6% of its earnings in the form of a dividend. Dolby Laboratories pays out 28.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Twenty-First Century Fox has raised its dividend for 2 consecutive years. Twenty-First Century Fox is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional & Insider Ownership
23.3% of Twenty-First Century Fox shares are held by institutional investors. Comparatively, 51.9% of Dolby Laboratories shares are held by institutional investors. 39.4% of Twenty-First Century Fox shares are held by insiders. Comparatively, 43.8% of Dolby Laboratories shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Twenty-First Century Fox and Dolby Laboratories’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Twenty-First Century Fox||10.36%||22.47%||7.20%|
This is a summary of current recommendations and price targets for Twenty-First Century Fox and Dolby Laboratories, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Twenty-First Century Fox||0||1||1||0||2.50|
Twenty-First Century Fox currently has a consensus target price of $34.00, suggesting a potential upside of 33.39%. Dolby Laboratories has a consensus target price of $58.83, suggesting a potential downside of 0.20%. Given Twenty-First Century Fox’s higher probable upside, research analysts plainly believe Twenty-First Century Fox is more favorable than Dolby Laboratories.
Volatility and Risk
Twenty-First Century Fox has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, Dolby Laboratories has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500.
Dolby Laboratories beats Twenty-First Century Fox on 9 of the 17 factors compared between the two stocks.
Twenty-First Century Fox Company Profile
Twenty-First Century Fox, Inc. is a media and entertainment company. The Company’s segments include Cable Network Programming; Television; Filmed Entertainment, and Other, Corporate and Eliminations. The Cable Network Programming segment produces and licenses news, business news, sports, general entertainment, factual entertainment and movie programming for distribution. The Television segment is engaged in the operation of broadcast television stations and the broadcasting of network programming in the United States. The Filmed Entertainment segment is engaged in the production and acquisition of live-action and animated motion pictures for distribution and licensing in all formats in all entertainment media, and the production and licensing of television programming around the world. The Other, Corporate and Eliminations segment consists primarily of corporate overhead and eliminations, and other businesses.
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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