Critical Contrast: Dolby Laboratories (DLB) versus Finjan (FNJN)

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

Earnings & Valuation

This table compares Finjan and Dolby Laboratories’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Finjan $50.48 million 1.64 $22.81 million $0.35 8.54
Dolby Laboratories $1.08 billion 6.30 $201.80 million $2.20 29.73

Dolby Laboratories has higher revenue and earnings than Finjan. Finjan is trading at a lower price-to-earnings ratio than Dolby Laboratories, indicating that it is currently the more affordable of the two stocks.

Profitability

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

Net Margins Return on Equity Return on Assets
Finjan N/A 101.37% 49.90%
Dolby Laboratories 7.64% 12.73% 10.65%

Dividends

Dolby Laboratories pays an annual dividend of $0.64 per share and has a dividend yield of 1.0%. Finjan does not pay a dividend. Dolby Laboratories pays out 29.1% of its earnings in the form of a dividend. Dolby Laboratories has increased its dividend for 3 consecutive years.

Analyst Ratings

This is a summary of current ratings and target prices for Finjan and Dolby Laboratories, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Finjan 0 0 2 0 3.00
Dolby Laboratories 0 3 2 0 2.40

Finjan currently has a consensus target price of $5.00, suggesting a potential upside of 67.22%. Dolby Laboratories has a consensus target price of $65.20, suggesting a potential downside of 0.32%. Given Finjan’s stronger consensus rating and higher probable upside, analysts clearly believe Finjan is more favorable than Dolby Laboratories.

Volatility & Risk

Finjan has a beta of -0.73, indicating that its share price is 173% less volatile than the S&P 500. Comparatively, Dolby Laboratories has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500.

Institutional & Insider Ownership

44.1% of Finjan shares are owned by institutional investors. Comparatively, 54.1% of Dolby Laboratories shares are owned by institutional investors. 8.8% of Finjan shares are owned by company insiders. Comparatively, 43.8% of Dolby Laboratories shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Dolby Laboratories beats Finjan on 11 of the 16 factors compared between the two stocks.

About Finjan

Finjan Holdings, Inc., a cybersecurity company, provides intellectual property licensing and enforcement services in the United States and internationally. The company owns a portfolio of patents related to software and hardware technologies that proactively detect malicious code and thereby protects end users from identity and data theft, spyware, malware, phishing, Trojans, and other Web and network threats. Its patented technologies are used in specific cybersecurity technology areas, including endpoint/cloud software, Web gateway/Internet infrastructure, networking equipment markets, and mobile security. The company's technology scans and repels the latest and unknown threats to network, Web, and endpoint devices on a real-time basis. It also develops mobile security applications; invests in cybersecurity technologies and intellectual property; and provides cyber risk and cyber security advisory services provides. Finjan Holdings, Inc. was founded in 1997 and is headquartered in East Palo Alto, California.

About Dolby Laboratories

Dolby Laboratories, Inc. creates audio and imaging technologies that transform entertainment and communications at the cinema, at home, at work, and on mobile devices. The company develops and licenses its audio technologies, including Dolby Digital Plus for digital television, mobile, and Internet-based services; Dolby Digital, a digital audio coding technology that provides multichannel sound in the home; and AAC & HE-AAC, an audio coding technologies used to broadcast, download, and streaming content. Its audio technologies also comprise Dolby TrueHD, an audio coding technology for content providers; Dolby Atmos, an object-oriented audio technology for home theaters, device speakers, and headphones; Dolby AC-4, a digital audio coding system that addresses the current and future needs of broadcast and streaming entertainment services; Dolby Voice, an audio conferencing technology; and Dolby Vision, an imaging technology for cinema, digital television, and other consumer devices, as well as HEVC, a digital video codec with higher bandwidth efficiency used in a range of media devices. In addition, the company designs and manufactures audio and imaging products, such as digital cinema servers, Dolby Cinema audio products, and other products for the film production, cinema, television, broadcast, and entertainment industries. Further, it offers an array of 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.

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