Reviewing Dropbox (DBX) & Its Peers

Dropbox (NASDAQ: DBX) is one of 198 publicly-traded companies in the “Prepackaged software” industry, but how does it weigh in compared to its competitors? We will compare Dropbox to related businesses based on the strength of its valuation, dividends, earnings, institutional ownership, risk, profitability and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Dropbox	-34.84%	-79.85%	-30.55%
Dropbox Competitors	-39.81%	-27.41%	-3.39%

Analyst Recommendations

This is a summary of current ratings and target prices for Dropbox and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dropbox	0	3	12	0	2.80
Dropbox Competitors	1648	7760	14359	706	2.58

Dropbox currently has a consensus target price of $34.08, indicating a potential upside of 50.52%. As a group, “Prepackaged software” companies have a potential upside of 5.05%. Given Dropbox’s stronger consensus rating and higher possible upside, analysts plainly believe Dropbox is more favorable than its competitors.

Institutional & Insider Ownership

24.6% of Dropbox shares are owned by institutional investors. Comparatively, 57.9% of shares of all “Prepackaged software” companies are owned by institutional investors. 21.4% of shares of all “Prepackaged software” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Dropbox and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Dropbox	$1.39 billion	-$111.70 million	-17.28
Dropbox Competitors	$1.88 billion	$215.24 million	35.48

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

Summary

Dropbox competitors beat Dropbox on 8 of the 12 factors compared.

Dropbox Company Profile

Dropbox Inc. provides a collaboration platform worldwide. Its platform allows individuals, teams, and organizations to create, access, and share content online. The company was formerly known as Evenflow, Inc. and changed its name to Dropbox, Inc. in October 2009. Dropbox Inc. has strategic partnership with Zoom Video Communications, Inc. Dropbox Inc. was founded in 2007 and is headquartered in San Francisco, California.