Dolby Laboratories (DLB) vs Unifirst Corporation (UNF)

Dolby Laboratories and Unifirst Corporation are both Specialty Business Services companies. Dolby Laboratories is the larger, with a market value of $5.4B against $4.5B — 1.2× the size. Dolby Laboratories trades at the lower P/E: 24.6× against 39.1×. Unifirst Corporation grew revenue faster over the last twelve months: 1.42% against 0.55%. Dolby Laboratories has the higher net margin (16.7% vs 4.65%) and the higher return on invested capital (8.06% vs 4.43%). Both pay a dividend; Dolby Laboratories yields more (1.38% vs 0.75%). Across the 22 metrics below, Dolby Laboratories leads on 17 and Unifirst Corporation on 5.

Valuation

Metric DLB UNF Specialty Business Services median
P/E 24.61 39.14 23.86
P/S 4.07 1.88 1.06
P/B 2.13 2.13 2.37
Price to free cash flow 15.28 52.66 16.54
EV/EBITDA 13.96 15.81 11.51
EV/Sales 3.53 1.81 1.51
Earnings yield 4.06% 2.56% 2.14%
Free cash flow yield 6.54% 1.90% 1.55%

Profitability

Metric DLB UNF Specialty Business Services median
Gross margin 87.61% 36.68% 35.31%
Operating margin 17.65% 5.77% 3.43%
Net margin 16.70% 4.65% 1.67%
Free cash flow margin 26.66% 3.57% 3.28%
Return on equity 8.69% 5.30% 0.58%
Return on assets 7.12% 4.15% 0.33%
Return on invested capital 8.06% 4.43% 0.65%

Growth

Metric DLB UNF Specialty Business Services median
Revenue growth (TTM) 0.55% 1.42% 6.04%
EPS growth (last fiscal year) (2.60%) 2.70% —
Revenue growth, 5-year CAGR 3.04% 6.16% 7.66%
Net income growth, 5-year CAGR 1.97% 1.78% 0.00%

Health

Metric DLB UNF Specialty Business Services median
Debt to equity 0.00 0.00 0.21
Current ratio 3.19 3.11 1.62
Net debt to EBITDA (2.18) (0.64) 1.16

Dividend

Metric DLB UNF Specialty Business Services median
Dividend yield 1.38% 0.75% 1.61%
Payout ratio 0.47 0.23 0.00

Size

Metric DLB UNF Specialty Business Services median
Market cap 5.38b 4.48b 879.14m

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