Critical Survey: Dolby Laboratories (NYSE:DLB) & Silvaco Group (NASDAQ:SVCO)

Silvaco Group (NASDAQ:SVCO) and Dolby Laboratories (NYSE:DLB) are both technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, valuation, analyst recommendations, profitability and earnings.

Profitability

This table compares Silvaco Group and Dolby Laboratories’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Silvaco Group	-30.43%	-15.29%	-10.02%
Dolby Laboratories	16.70%	11.08%	9.04%

Risk & Volatility

Silvaco Group has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500. Comparatively, Dolby Laboratories has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500.

Earnings and Valuation

This table compares Silvaco Group and Dolby Laboratories”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Silvaco Group	$63.06 million	4.51	-$41.21 million	($0.72)	-11.67
Dolby Laboratories	$1.35 billion	4.05	$255.02 million	$2.35	24.82

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

Insider & Institutional Ownership

58.6% of Dolby Laboratories shares are owned by institutional investors. 47.9% of Silvaco Group 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, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Silvaco Group and Dolby Laboratories, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Silvaco Group	1	0	3	1	2.80
Dolby Laboratories	0	1	2	0	2.67

Silvaco Group currently has a consensus target price of $12.67, suggesting a potential upside of 50.79%. Dolby Laboratories has a consensus target price of $87.50, suggesting a potential upside of 50.04%. Given Silvaco Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe Silvaco Group is more favorable than Dolby Laboratories.

Summary

Dolby Laboratories beats Silvaco Group on 9 of the 15 factors compared between the two stocks.

About Silvaco Group

Silvaco Group Inc. is a provider of TCAD, EDA software and SIP solutions which enable semiconductor design and AI through software and innovation. The company’s solutions are used for process and device development across display, power devices, automotive, memory, high performance compute, photonics, internet of things and 5G/6G mobile markets for complex SoC design. Silvaco Group Inc. is headquartered in Santa Clara, 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.