Silvaco Group (NASDAQ:SVCO) and Dolby Laboratories (NYSE:DLB) Financial Contrast

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dolby Laboratories	$1.35 billion	4.07	$255.02 million	$2.35	25.02
Silvaco Group	$63.06 million	4.37	-$41.21 million	($0.72)	-11.29

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

Risk and Volatility

Dolby Laboratories has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, Silvaco Group has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500.

Institutional & Insider Ownership

58.6% of Dolby Laboratories shares are held by institutional investors. 37.9% of Dolby Laboratories shares are held by company insiders. Comparatively, 47.9% of Silvaco Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Dolby Laboratories and Silvaco Group’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%
Silvaco Group	-30.43%	-15.29%	-10.02%

Analyst Ratings

This is a breakdown of current recommendations for Dolby Laboratories and Silvaco Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dolby Laboratories	0	1	2	0	2.67
Silvaco Group	1	0	3	1	2.80

Dolby Laboratories currently has a consensus target price of $87.50, indicating a potential upside of 48.81%. Silvaco Group has a consensus target price of $12.67, indicating a potential upside of 55.80%. Given Silvaco Group’s stronger consensus rating and higher probable upside, analysts clearly believe Silvaco Group is more favorable than Dolby Laboratories.

Summary

Dolby Laboratories beats Silvaco Group on 9 of the 15 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 Silvaco Group

Silvaco Group Inc. is a provider of TCAD, EDA software and SIP solutions which enable semiconductor design and AI through software and innovation. The company’s solutions are used for process and device development across display, power devices, automotive, memory, high performance compute, photonics, internet of things and 5G/6G mobile markets for complex SoC design. Silvaco Group Inc. is headquartered in Santa Clara, California.