Dropbox (DBX) & Its Competitors Head-To-Head Analysis

Dropbox (NASDAQ:DBX) is one of 959 publicly-traded companies in the “Software” industry, but how does it compare to its rivals? We will compare Dropbox to related businesses based on the strength of its risk, dividends, earnings, institutional ownership, profitability, valuation and analyst recommendations.

Risk and Volatility

Dropbox has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500. Comparatively, Dropbox’s rivals have a beta of 1.35, suggesting that their average share price is 35% more volatile than the S&P 500.

Valuation and Earnings

This table compares Dropbox and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Dropbox	$2.52 billion	$508.40 million	17.92
Dropbox Competitors	$1.91 billion	$382.82 million	112.40

Dropbox has higher revenue and earnings than its rivals. Dropbox is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Dropbox and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dropbox	17.17%	-22.35%	15.86%
Dropbox Competitors	-599.26%	26.08%	-8.90%

Insider & Institutional Ownership

94.8% of Dropbox shares are owned by institutional investors. Comparatively, 41.5% of shares of all “Software” companies are owned by institutional investors. 35.5% of Dropbox shares are owned by insiders. Comparatively, 19.9% of shares of all “Software” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for Dropbox and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dropbox	3	4	2	0	1.89
Dropbox Competitors	5835	21612	45005	1500	2.57

Dropbox currently has a consensus price target of $35.60, suggesting a potential upside of 7.36%. As a group, “Software” companies have a potential upside of 28.15%. Given Dropbox’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Dropbox has less favorable growth aspects than its rivals.

Summary

Dropbox rivals beat Dropbox on 7 of the 13 factors compared.

About Dropbox

Dropbox, Inc. is a cloud software company that helps individuals and organizations store, access, sync and share files across devices. Its core Dropbox service also supports collaboration through shared folders, comments and tools for managing digital content. The company offers products for a range of work and collaboration needs, including Dropbox Sign for electronic signatures and DocSend for sharing and tracking documents. Dropbox has also developed tools for reviewing creative content and organizing work, alongside integrations with other business applications.