Why isn't my Server fast enough for HEVC when I have 28 cores dual-cpu (Xeon's @ 2.20)?

Hi guys, I hope someone can help me out. I made a new Plex server specifically to be able to transcode HEVC/x265 files and read that CPU is the most important thing. So what I did is built a dual cpu setup where each CPU has 14 cores, so 28 cores total. When I look at CPU usage for a transcode, I'm only at like 10%, but my clients STILL stop and go like it's catching up.

Can someone help? Is my server at fault? Is there a setting I need to change? Is it cache? Do I need to change the cache directory? Just hoping this can be fixed vs having to buy more CPU (which I don't think is the problem). Is there something else I could provide (a log file perhaps)?

Thanks and hoping for some good news!

Tom

Here's my info from CPU-Z (both processors are the same);

64 Gigs RAM

Processors

Number of processors 2
Number of threads 56

Processor 1 ID = 0
Number of cores 14 (max 14)
Number of threads 28 (max 28)
Name Intel Xeon E5 v3
Codename Haswell-E/EP
Specification Genuine Intel(R) CPU @ 2.20GHz
Package (platform ID) Socket 2011 LGA (0x0)
CPUID 6.F.1
Extended CPUID 6.3F
Core Stepping
Technology 22 nm
TDP Limit 145.0 Watts
Tjmax 97.0 °C
Core Speed 1199.7 MHz
Multiplier x Bus Speed 12.0 x 100.0 MHz
Stock frequency 2200 MHz
Instructions sets MMX, SSE, SSE2, SSE3, SSSE3, SSE4.1, SSE4.2, EM64T, VT-x, AES, AVX, AVX2, FMA3, TSX
L1 Data cache 14 x 32 KBytes, 8-way set associative, 64-byte line size
L1 Instruction cache 14 x 32 KBytes, 8-way set associative, 64-byte line size
L2 cache 14 x 256 KBytes, 8-way set associative, 64-byte line size
L3 cache 35 MBytes, 20-way set associative, 64-byte line size
Max CPUID level 0000000Fh
Max CPUID ext. level 80000008h
Cache descriptor Level 1, D, 32 KB, 2 thread(s)
Cache descriptor Level 1, I, 32 KB, 2 thread(s)
Cache descriptor Level 2, U, 256 KB, 2 thread(s)
Cache descriptor Level 3, U, 35 MB, 32 thread(s)
FID/VID Control yes

Turbo Mode      supported, enabled
Max non-turbo ratio 22x
Max turbo ratio     28x
Max efficiency ratio    12x
Max Power       290 Watts
Min Power       63 Watts
O/C bins        none
Ratio 1 core        28x
Ratio 2 cores       27x
Ratio 3 cores       26x
Ratio 4 cores       25x
Ratio 5 cores       25x
Ratio 6 cores       25x
Ratio 7 cores       25x
Ratio 8 cores       25x
Ratio 9 cores       25x
Ratio 10 cores      25x
Ratio 11 cores      25x
Ratio 12 cores      25x
Ratio 13 cores      25x
Ratio 14 cores      25x
Ratio 15 cores      25x
Ratio 16 cores      25x
Ratio 17 cores      25x
Ratio 18 cores      25x
IA Voltage Mode     PCU adaptive
IA Voltage Offset   0 mV
GT Voltage Mode     PCU adaptive
GT Voltage Offset   0 mV
LLC/Ring Voltage Mode   PCU adaptive
LLC/Ring Voltage Offset 0 mV
Agent Voltage Mode  PCU adaptive
Agent Voltage Offset    0 mV