Critical Contrast: Dropbox (NASDAQ:DBX) and CyberAgent (OTCMKTS:CYGIY)

Dropbox (NASDAQ:DBXGet Free Report) and CyberAgent (OTCMKTS:CYGIYGet Free Report) are both mid-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.

Earnings and Valuation

This table compares Dropbox and CyberAgent”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dropbox $2.55 billion 2.88 $452.30 million $1.77 16.00
CyberAgent $5.86 billion 1.04 $212.39 million $0.20 30.00

Dropbox has higher earnings, but lower revenue than CyberAgent. Dropbox is trading at a lower price-to-earnings ratio than CyberAgent, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Dropbox and CyberAgent, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dropbox 1 3 1 0 2.00
CyberAgent 0 0 0 0 0.00

Dropbox presently has a consensus target price of $31.75, suggesting a potential upside of 12.11%. Given Dropbox’s stronger consensus rating and higher probable upside, research analysts clearly believe Dropbox is more favorable than CyberAgent.

Volatility & Risk

Dropbox has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500. Comparatively, CyberAgent has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500.

Institutional & Insider Ownership

94.8% of Dropbox shares are owned by institutional investors. 30.0% of Dropbox shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Dropbox and CyberAgent’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dropbox 19.87% -49.51% 19.48%
CyberAgent 3.62% 14.04% 7.00%

Summary

Dropbox beats CyberAgent on 11 of the 14 factors compared between the two stocks.

About Dropbox

(Get Free Report)

Dropbox, Inc. provides a content collaboration platform worldwide. The company's platform allows individuals, families, teams, and organizations to collaborate and sign up for free through its website or app, as well as upgrade to a paid subscription plan for premium features. It serves customers in professional services, technology, media, education, industrial, consumer and retail, and financial services industries. The company was formerly known as Evenflow, Inc. and changed its name to Dropbox, Inc. in October 2009. Dropbox, Inc. was incorporated in 2007 and is headquartered in San Francisco, California.

About CyberAgent

(Get Free Report)

CyberAgent, Inc. engages in the media, internet advertising, game, and investment development businesses primarily in Japan. The company operates Ameba, a blog service; Tapple for online dating; AWA, a music streaming service; and WinTicket for online betting. It also offers internet advertising agency and ad technology services; and smartphone games. In addition, the company operates a programming school for kids and provides application and reward points exchange platform services; artificial intelligence services; and digital transformation services. CyberAgent, Inc. was incorporated in 1998 and is headquartered in Tokyo, Japan.

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