Contrasting Dolby Laboratories (NYSE:DLB) and Consensus Cloud Solutions (NASDAQ:CCSI)

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

Analyst Recommendations

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

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

Consensus Cloud Solutions presently has a consensus target price of $41.67, indicating a potential upside of 4.56%. Dolby Laboratories has a consensus target price of $83.00, indicating a potential upside of 32.87%. Given Dolby Laboratories’ higher possible upside, analysts clearly believe Dolby Laboratories is more favorable than Consensus Cloud Solutions.

Insider & Institutional Ownership

93.9% of Consensus Cloud Solutions shares are owned by institutional investors. Comparatively, 58.6% of Dolby Laboratories shares are owned by institutional investors. 3.6% of Consensus Cloud Solutions shares are owned by insiders. Comparatively, 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 will outperform the market over the long term.

Profitability

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

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

Risk and Volatility

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Consensus Cloud Solutions	$354.67 million	2.06	$84.53 million	$4.94	8.07
Dolby Laboratories	$1.35 billion	4.34	$255.02 million	$2.35	26.58

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 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.

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.