Reviewing Kuke Music (NYSE:KUKE) and Dolby Laboratories (NYSE:DLB)

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Kuke Music and Dolby Laboratories, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kuke Music	1	0	0	0	1.00
Dolby Laboratories	0	3	3	0	2.50

Dolby Laboratories has a consensus target price of $95.75, indicating a potential upside of 39.20%. Given Dolby Laboratories’ stronger consensus rating and higher possible upside, analysts plainly believe Dolby Laboratories is more favorable than Kuke Music.

Profitability

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

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kuke Music	$9.59 million	1.98	-$9.03 million	N/A	N/A
Dolby Laboratories	$1.27 billion	5.18	$261.83 million	$2.73	25.20

Dolby Laboratories has higher revenue and earnings than Kuke Music.

Risk & Volatility

Kuke Music has a beta of -0.11, indicating that its stock price is 111% less volatile than the S&P 500. Comparatively, Dolby Laboratories has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500.

Institutional and Insider Ownership

0.0% of Kuke Music shares are held by institutional investors. Comparatively, 58.6% of Dolby Laboratories shares are held by institutional investors. 42.2% of Kuke Music shares are held by company insiders. Comparatively, 38.4% of Dolby Laboratories shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Dolby Laboratories beats Kuke Music on 11 of the 12 factors compared between the two stocks.

About Kuke Music

Kuke Music Holding Limited, through its subsidiaries, provides classical music licensing, subscription, and education services in China. It operates through two segments: Subscription, Licensing and Smart Education Business; and Music Events and Performances Business. The Subscription, Licensing and Smart Education Business segment distributes commercial copyrights and offers music education solutions. The Music Events Business segment provides music festival events and music performance services; and sells musical instruments, including conch smart speakers. The company licenses its music content primarily to online music entertainment platforms, digital music service providers, and commercial enterprises, as well as film and TV production companies, airlines, and smart hardware companies. It has institutional subscribers, including universities and music conservatories, as well as public libraries. Kuke Music Holding Limited was founded in 2002 and is headquartered in Beijing, 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.