Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, audio technology specialist Dolby Laboratories (NYSE: DLB) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Dolby's business and see what CAPS investors are saying about the stock right now.

Dolby facts

Headquarters (Founded)

San Francisco (1965)

Market Cap

$5.67 billion


Electronic components

Trailing-12-Month Revenue

$944.2 million


CEO Kevin Yeaman (since 2009)

CFO Murray Demo (since 2009)

Return on Equity (Average, Past 3 Years)



$704.2 million / $0


DTS (Nasdaq: DTSI)

Sony (NYSE: SNE)

SRS Labs (Nasdaq: SRSL)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 98% of the 3,732 members who have rated Dolby believe the stock will outperform the S&P 500 going forward. These bulls include gweech and fightinag04.

Just last month, gweech touched on Dolby's ubiquitous nature:

These guys are everywhere and in everything. As the PC market dies, they will continue to romp the tablet, mobile device, and TV arena. They have a great cash positions, incredible margins, and a totally geeked out culture ... ruthless about making quality sound products.

In fact, Dolby boasts a rather robust three-year average operating margin of 47.2%. That's higher than that of competitors DTS (25.6%), Sony (1.7%), and SRS Labs (4.9%).

Late last year, fightinag04 elaborated on the bull case:

Dolby is the long established king when it comes to digital audio integration into various types of entertainment, and has managed to stay ahead of all competition, which will only increase in demand as customer want better and better quality to go with their video games, movies, etc. Their maintain high margins and great growth opportunities worldwide. While not cheap by traditional value metrics, they present a long term growth opportunity whose story should only get better in time.

What do you think about Dolby, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Dolby is a Motley Fool Stock Advisor pick. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.