WallStSmart

Dolby Laboratories (DLB)vsPACCAR Inc (PCAR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PACCAR Inc generates 1975% more annual revenue ($27.78B vs $1.34B). DLB leads profitability with a 18.0% profit margin vs 8.9%. PCAR appears more attractively valued with a PEG of 1.18. PCAR earns a higher WallStSmart Score of 52/100 (C-).

DLB

Hold

48

out of 100

Grade: D+

Growth: 2.7Profit: 7.0Value: 6.7Quality: 7.3
Piotroski: 3/9Altman Z: 4.85

PCAR

Buy

52

out of 100

Grade: C-

Growth: 4.0Profit: 6.0Value: 4.7Quality: 4.5
Piotroski: 1/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DLBUndervalued (+38.5%)

Margin of Safety

+38.5%

Fair Value

$112.34

Current Price

$63.26

$49.08 discount

UndervaluedFair: $112.34Overvalued
PCARSignificantly Overvalued (-24.7%)

Margin of Safety

-24.7%

Fair Value

$103.83

Current Price

$118.80

$14.97 premium

UndervaluedFair: $103.83Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DLB3 strengths · Avg: 8.7/10
Altman Z-ScoreHealth
4.8510/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

Operating MarginProfitability
20.9%8/10

Strong operational efficiency at 20.9%

PCAR1 strengths · Avg: 9.0/10
Market CapQuality
$62.52B9/10

Large-cap with strong market position

Areas to Watch

DLB4 concerns · Avg: 3.3/10
PEG RatioValuation
2.084/10

Expensive relative to growth rate

P/E RatioValuation
25.6x4/10

Moderate valuation

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-2.9%2/10

Revenue declined 2.9%

PCAR3 concerns · Avg: 3.0/10
P/E RatioValuation
25.3x4/10

Moderate valuation

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

Revenue GrowthGrowth
-8.9%2/10

Revenue declined 8.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : DLB

The strongest argument for DLB centers on Altman Z-Score, Price/Book, Operating Margin. Profitability is solid with margins at 18.0% and operating margin at 20.9%.

Bull Case : PCAR

The strongest argument for PCAR centers on Market Cap. PEG of 1.18 suggests the stock is reasonably priced for its growth.

Bear Case : DLB

The primary concerns for DLB are PEG Ratio, P/E Ratio, Piotroski F-Score.

Bear Case : PCAR

The primary concerns for PCAR are P/E Ratio, Piotroski F-Score, Revenue Growth.

Key Dynamics to Monitor

DLB profiles as a declining stock while PCAR is a value play — different risk/reward profiles.

PCAR carries more volatility with a beta of 1.06 — expect wider price swings.

DLB is growing revenue faster at -2.9% — sustainability is the question.

PCAR generates stronger free cash flow (778M), providing more financial flexibility.

Bottom Line

PCAR scores higher overall (52/100 vs 48/100). DLB offers better value entry with a 38.5% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Dolby Laboratories

INDUSTRIALS · SPECIALTY BUSINESS SERVICES · USA

Dolby Laboratories, Inc. creates imaging and audio technologies that transform entertainment and communications in the theater, home, work, and mobile devices. The company is headquartered in San Francisco, California.

PACCAR Inc

INDUSTRIALS · FARM & HEAVY CONSTRUCTION MACHINERY · USA

PACCAR Inc is an American Fortune 500 company and counts among the largest manufacturers of medium- and heavy-duty trucks in the world. PACCAR is engaged in the design, manufacture and customer support of light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt, Leyland Trucks, and DAF nameplates. PACCAR also designs and manufactures powertrains, provides financial services and information technology, and distributes truck parts related to its principal business.

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