Dolby Laboratories (NYSE:DLB) vs. Konami (OTCMKTS:KNMCY) Head-To-Head Survey

Dolby Laboratories (NYSE:DLB) and Konami (OTCMKTS:KNMCY) are both mid-cap technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Profitability

This table compares Dolby Laboratories and Konami’s 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%
Konami	7.25%	6.91%	4.60%

Volatility & Risk

Dolby Laboratories has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, Konami has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Dolby Laboratories and Konami, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dolby Laboratories	0	2	3	0	2.60
Konami	0	0	0	0	0.00

Dolby Laboratories currently has a consensus price target of $90.75, indicating a potential upside of 54.40%. Given Dolby Laboratories’ stronger consensus rating and higher probable upside, analysts plainly believe Dolby Laboratories is more favorable than Konami.

Dividends

Dolby Laboratories pays an annual dividend of $1.44 per share and has a dividend yield of 2.4%. Konami pays an annual dividend of $0.32 per share and has a dividend yield of 0.5%. Dolby Laboratories pays out 61.3% of its earnings in the form of a dividend. Konami pays out 24.1% 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. Dolby Laboratories has increased its dividend for 10 consecutive years. Dolby Laboratories is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

58.6% of Dolby Laboratories shares are owned by institutional investors. Comparatively, 0.0% of Konami shares are owned by institutional investors. 37.9% of Dolby Laboratories shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Dolby Laboratories and Konami”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dolby Laboratories	$1.35 billion	4.12	$255.02 million	$2.35	25.01
Konami	$2.42 billion	3.56	$183.01 million	$1.33	47.83

Dolby Laboratories has higher earnings, but lower revenue than Konami. Dolby Laboratories is trading at a lower price-to-earnings ratio than Konami, indicating that it is currently the more affordable of the two stocks.

Summary

Dolby Laboratories beats Konami on 13 of the 17 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 Konami

Konami Holdings Corporation, together with its subsidiaries, primarily engages in the digital entertainment business. It operates through four segments: Digital Entertainment, Health & Fitness, Gaming & Systems, and Pachislot & Pachinko Machines. The Digital Entertainment segment manufactures and sells digital content and related products, including mobile games, arcade games, card games, and computer and video games. The Health & Fitness segment operates health and fitness clubs, as well as designs, manufactures, and sells fitness machines and health products. The Gaming & Systems segment designs, manufactures, sells, and services gaming machines and casino management systems. The Pachislot & Pachinko Machines segment researches, designs, produces, and sells pachinko slot and pachinko machines. It operates in Japan and other Asia/Oceania countries, the United States, and Europe. The company was formerly known as Konami Corporation and changed its name to Konami Holdings Corporation in October 2015. Konami Holdings Corporation was founded in 1969 and is headquartered in Tokyo, Japan.