Datasea (NASDAQ:DTSS) versus Dolby Laboratories (NYSE:DLB) Head to Head Comparison

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

Analyst Ratings

This is a summary of current recommendations and price targets for Dolby Laboratories and Datasea, as reported by MarketBeat.

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

Dolby Laboratories currently has a consensus target price of $87.50, indicating a potential upside of 48.83%. Given Dolby Laboratories’ stronger consensus rating and higher possible upside, analysts plainly believe Dolby Laboratories is more favorable than Datasea.

Risk and Volatility

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

Institutional & Insider Ownership

58.6% of Dolby Laboratories shares are held by institutional investors. Comparatively, 82.1% of Datasea shares are held by institutional investors. 37.9% of Dolby Laboratories shares are held by company insiders. Comparatively, 50.6% of Datasea shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Dolby Laboratories and Datasea’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%
Datasea	-4.80%	-88.98%	-37.33%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dolby Laboratories	$1.35 billion	4.08	$255.02 million	$2.35	25.02
Datasea	$40.70 million	0.15	-$2.13 million	($0.32)	-1.85

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 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 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.