Comparing Aftermaster (OTCMKTS:AFTM) and Dolby Laboratories (NYSE:DLB)

Aftermaster (OTCMKTS:AFTM) and Dolby Laboratories (NYSE:DLB) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, risk, analyst recommendations, earnings and institutional ownership.

Institutional & Insider Ownership

58.6% of Dolby Laboratories shares are owned by institutional investors. 10.2% of Aftermaster shares are owned by insiders. Comparatively, 38.4% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Aftermaster	N/A	N/A	N/A
Dolby Laboratories	19.62%	11.52%	9.26%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aftermaster	0	0	0	0	0.00
Dolby Laboratories	0	0	3	0	3.00

Dolby Laboratories has a consensus target price of $102.3333, indicating a potential upside of 38.83%. Given Dolby Laboratories’ stronger consensus rating and higher probable upside, analysts plainly believe Dolby Laboratories is more favorable than Aftermaster.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aftermaster	N/A	N/A	N/A	N/A	N/A
Dolby Laboratories	$1.27 billion	5.55	$261.83 million	$2.73	27.00

Dolby Laboratories has higher revenue and earnings than Aftermaster.

Summary

Dolby Laboratories beats Aftermaster on 9 of the 9 factors compared between the two stocks.

About Aftermaster

AfterMaster, Inc., together with its subsidiaries, operates as an audio technology company in the United States. It develops and commercializes proprietary audio and video technologies for professional and consumer use. The company offers AfterMaster audio, a mastering, remastering, and audio processing technology that makes various audio source sounds louder, fuller, deeper, and clearer; ProMaster, an online music mastering, streaming, and storage service designed for independent artists; and Aftermaster Pro, a personal audio re-mastering device. It also provides Aftermaster Studio Pro products for use in commercial audio applications; and MyStudio products. In addition, AfterMaster, Inc. operates six recording and mastering studios. The company was formerly known as Studio One Media, Inc. and changed its name to AfterMaster, Inc. in September 2015. AfterMaster, Inc. was incorporated in 1988 and is based in Scottsdale, Arizona.

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.