Quick verdict: DLB vs ONTO in 2026

Dolby Laboratories, Inc. (DLB) presents a compelling profile compared to Onto Innovation Inc. (ONTO), leading in most fundamental metrics. DLB emerges as the growth leader with higher revenue expansion, while also standing out as the clear value and margin leader. Although analysts show unanimous confidence in ONTO, DLB offers significantly higher implied upside according to both consensus price targets and discounted cash flow analysis. Not investment advice.

DLB vs ONTO: key metrics side by side

Full side-by-side comparison of DLB and ONTO across valuation, profitability, growth and analyst sentiment. Data updated 2026-05-08.

DLB vs ONTO valuation comparison

When considering the DLB vs ONTO valuation, Dolby Laboratories (DLB) presents a significantly more attractive profile. DLB trades at a P/E ratio of 22.46x, which is remarkably lower than Onto Innovation (ONTO) at 128.16x. This disparity suggests that ONTO is priced for extremely high future growth, which is not fully supported by its current revenue growth figures or discounted cash flow assessment. Similarly, the price-to-book (P/B) ratio for DLB stands at 2.09x, considerably below ONTO’s 6.4x, further reinforcing DLB’s relative undervaluation.

A deeper look at the intrinsic value through discounted cash flow (DCF) analysis strongly favors DLB. DLB’s DCF analysis indicates a positive upside of +33.1%, suggesting the stock is trading below its fair value. In stark contrast, ONTO’s DCF calculation reveals a substantial downside of -78.1%, implying that its current price far exceeds its calculated intrinsic value. Based purely on these valuation metrics, DLB appears to be the much cheaper stock and offers a greater margin of safety for investors looking at the DLB vs ONTO valuation in 2026.

DLB vs ONTO growth comparison

In terms of growth, Dolby Laboratories (DLB) demonstrates stronger top-line momentum compared to Onto Innovation (ONTO). DLB reported a year-over-year revenue growth of +5.9%, outpacing ONTO’s +1.8% revenue growth. This indicates that DLB is currently expanding its business at a faster rate, translating to more robust fundamental growth. Furthermore, DLB’s total revenue for the trailing twelve months stands at $1.35 billion, which is higher than ONTO’s $1.01 billion, suggesting DLB has a larger revenue base while still achieving superior growth percentages.

While specific forward estimates for future years are not provided beyond current growth rates and analyst targets, DLB’s current higher revenue growth rate, combined with a positive DCF upside, suggests stronger organic momentum. Onto Innovation, despite being a larger company by market capitalization at $13.64 billion compared to DLB’s $5.49 billion, is not converting that larger scale into a higher growth rate based on the latest available data. For investors prioritizing current growth, DLB clearly has the stronger momentum in this DLB vs ONTO growth comparison.

DLB vs ONTO profitability

When examining the profitability of DLB vs ONTO, Dolby Laboratories (DLB) exhibits a significantly superior performance across key metrics. DLB’s net margin is an impressive 17.85%, indicating that a larger portion of its revenue translates into profit, compared to ONTO’s net margin of 10.33%. This substantial difference highlights DLB’s greater efficiency in managing costs and generating earnings from its operations. Similarly, DLB’s EBITDA margin of 27.58% far exceeds ONTO’s 17.26%, signaling stronger operational profitability before accounting for depreciation and amortization.

Regarding cash generation, DLB also holds a distinct advantage. Its Free Cash Flow (FCF) yield is 5.37%, considerably higher than ONTO’s 1.75%. A higher FCF yield suggests that DLB is generating more cash relative to its market capitalization, providing greater flexibility for investments, debt reduction, or shareholder returns. Both companies have not provided a calculable Return on Equity (ROE), leaving that metric as N/A%. While ONTO boasts a slightly better Debt/Equity ratio of 0x compared to DLB’s 0.02x, both companies demonstrate very low leverage, making debt a minimal concern. Overall, DLB clearly generates more cash and maintains higher profitability margins than ONTO.

Analyst ratings: DLB vs ONTO

The analyst community presents an interesting dichotomy when comparing DLB vs ONTO. For Dolby Laboratories (DLB), a total of 17 analysts provide coverage, with 47.1% issuing a “Buy” rating. The consensus among these analysts is a “Buy,” and they have set a target price of $85, which implies a significant upside of +47.9% from its current price of $57.47. This suggests a strong belief in DLB’s potential for capital appreciation, despite not having unanimous analyst support.

On the other hand, Onto Innovation (ONTO) receives universal acclaim from its covering analysts. All 11 analysts tracking ONTO have issued a “Buy” rating, resulting in a 100.0% Buy consensus. Their collective target price for ONTO is $331.67, representing a projected upside of +21.0% from its current price of $274.17. While ONTO has a flawless “Buy” rating percentage, DLB’s higher implied price target upside (+47.9% vs +21.0%) suggests that analysts see more potential for growth in DLB’s stock price over the coming period, despite fewer analysts giving it a ‘Buy’ rating.

Should I buy DLB or ONTO stock in 2026?

For growth investors in 2026, the question of should I buy DLB or ONTO stock heavily leans towards DLB based on current data. Dolby Laboratories exhibits a stronger revenue growth rate of 5.9% year-over-year compared to Onto Innovation’s 1.8%. Furthermore, DLB’s superior net margins (17.85% vs 10.33%) and EBITDA margins (27.58% vs 17.26%) indicate a more efficient business model that can sustain and translate growth into higher profits. While ONTO has a perfect 100% analyst buy rating, DLB’s current growth metrics appear more compelling for those seeking demonstrable expansion.

Value investors evaluating the dlb vs onto fundamentals and valuation will find DLB to be the significantly more attractive option. DLB’s P/E ratio of 22.46x is remarkably lower than ONTO’s 128.16x, and its P/B ratio of 2.09x also stands well below ONTO’s 6.4x. Critically, the discounted cash flow (DCF) analysis projects a substantial +33.1% upside for DLB, while forecasting a stark -78.1% downside for ONTO. This indicates that DLB is fundamentally undervalued relative to its cash flow generation potential, making it a stronger choice for value-oriented portfolios.

When considering income, neither DLB nor ONTO are primary choices for dividend investors, as both offer very low yields. However, if a dividend is a minor consideration, DLB does offer a symbolic dividend yield of 0.02%, whereas ONTO currently provides 0%. Therefore, for investors seeking any form of income alongside potential capital appreciation, DLB would be the marginal preference. Ultimately, based on a comprehensive analysis of growth, valuation, and profitability, Dolby Laboratories (DLB) appears to be the more robust investment opportunity in 2026. This is not investment advice.

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FAQ: DLB vs ONTO