Dolby Laboratories (NYSE:DLB) and Datasea (NASDAQ:DTSS) Head to Head Review

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

Insider and Institutional Ownership

82.1% of Datasea shares are owned by institutional investors. Comparatively, 58.6% of Dolby Laboratories shares are owned by institutional investors. 50.6% of Datasea shares are owned by company insiders. Comparatively, 37.9% of Dolby Laboratories shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and target prices for Datasea and Dolby Laboratories, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Datasea	1	0	0	0	1.00
Dolby Laboratories	0	1	2	0	2.67

Dolby Laboratories has a consensus price target of $87.50, indicating a potential upside of 50.30%. Given Dolby Laboratories’ stronger consensus rating and higher probable upside, analysts clearly believe Dolby Laboratories is more favorable than Datasea.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Datasea	-4.80%	-88.98%	-37.33%
Dolby Laboratories	16.70%	11.08%	9.04%

Volatility and Risk

Datasea has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500. Comparatively, Dolby Laboratories has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500.

Earnings & Valuation

This table compares Datasea 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
Datasea	$40.70 million	0.23	-$2.13 million	($0.32)	-2.82
Dolby Laboratories	$1.35 billion	4.04	$255.02 million	$2.35	24.77

Dolby Laboratories has higher revenue and earnings than Datasea. Datasea 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

Dolby Laboratories beats Datasea on 11 of the 13 factors compared between the two stocks.

About Datasea

Datasea Inc., through its subsidiaries, provides technology and information systems in the People's Republic of China. The company provides smart city solutions and 5G messaging applications. It also offers its smart security solutions primarily to schools, tourist or scenic attractions, and public communities. In addition, the company provides intelligent acoustics products, which include ultrasonic air sterilizer, air purification and deodorization, and other products. The company was formerly known as Rose Rock, Inc. and changed its name to Datasea Inc. in October 2015. Datasea Inc. was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.

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.