Reviewing Dolby Laboratories (NYSE:DLB) & Rockford (OTCMKTS:ROFO)

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

Profitability

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

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Rockford and Dolby Laboratories, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rockford	0	0	0	0	0.00
Dolby Laboratories	0	2	3	0	2.60

Dolby Laboratories has a consensus price target of $95.75, suggesting a potential upside of 33.91%. Given Dolby Laboratories’ stronger consensus rating and higher probable upside, analysts clearly believe Dolby Laboratories is more favorable than Rockford.

Institutional and Insider Ownership

58.6% of Dolby Laboratories shares are owned by institutional investors. 40.6% of Rockford 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 will outperform the market over the long term.

Earnings and Valuation

This table compares Rockford and Dolby Laboratories”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rockford	N/A	N/A	N/A	N/A	N/A
Dolby Laboratories	$1.35 billion	5.09	$261.83 million	$2.73	26.19

Dolby Laboratories has higher revenue and earnings than Rockford.

Summary

Dolby Laboratories beats Rockford on 8 of the 9 factors compared between the two stocks.

About Rockford

Rockford Corp. engages in the distribution, marketing and design of systems for the mobile audio aftermarket and OEM market. It distributes its products through the following brand names: Rockford Fosgate, Rockford Acoustic Design, CrimeStopper, Renegade and Lightning Audio. The company was founded by Jim Fosgate in 1973 and is headquartered in Tempe, AZ.

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.