Dropbox (NASDAQ:DBX – Get Free Report) and CyberArk Software (NASDAQ:CYBR – Get Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, risk, profitability, analyst recommendations and earnings.
Volatility & Risk
Dropbox has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, CyberArk Software has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.
Profitability
This table compares Dropbox and CyberArk Software’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Dropbox | 17.75% | -132.63% | 19.58% |
| CyberArk Software | -9.34% | 0.45% | 0.24% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dropbox | 0 | 2 | 1 | 0 | 2.33 |
| CyberArk Software | 0 | 1 | 26 | 1 | 3.00 |
Dropbox presently has a consensus price target of $27.67, suggesting a potential upside of 2.17%. CyberArk Software has a consensus price target of $418.04, suggesting a potential upside of 22.15%. Given CyberArk Software’s stronger consensus rating and higher possible upside, analysts plainly believe CyberArk Software is more favorable than Dropbox.
Valuation & Earnings
This table compares Dropbox and CyberArk Software”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Dropbox | $2.55 billion | 3.21 | $453.60 million | $1.41 | 19.21 |
| CyberArk Software | $1.00 billion | 16.90 | -$93.46 million | ($1.95) | -175.50 |
Dropbox has higher revenue and earnings than CyberArk Software. CyberArk Software is trading at a lower price-to-earnings ratio than Dropbox, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
94.8% of Dropbox shares are held by institutional investors. Comparatively, 91.8% of CyberArk Software shares are held by institutional investors. 28.6% of Dropbox shares are held by company insiders. Comparatively, 1.4% of CyberArk Software shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
Dropbox beats CyberArk Software on 8 of the 15 factors compared between the two stocks.
About Dropbox
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 CyberArk Software
CyberArk Software Ltd., together with its subsidiaries, develops, markets, and sells software-based identity security solutions and services in the United States, Europe, the Middle East, Africa, and internationally. Its solutions include Privileged Access Manager, which offers risk-based credential security and session; Vendor Privileged Access Manager combines Privileged Access Manager and Remote Access to provide secure access to third-party vendors; Dynamic Privileged Access, a SaaS solution that provides just-in-time access to Linux Virtual Machines; Endpoint Privilege Manager, a SaaS solution that secures privileges on the endpoint; and Secure Desktop, a solution that protects access to endpoints. The company also provides workforce identity, which offers adaptive multi-factor authentication (MFA), single sign-on, secure web sessions, workforce password management, application gateway, identity lifecycle management, and directory services; and customer identity services that provides authentication and authorization services, MFA, directory, and user management. In addition, it offers Secrets Manager Credential Providers to provide and manage the credentials used by third-party solutions; Conjur Enterprise and Conjur Cloud, which offers a secrets management solution for specific requirements; Secrets Hub, a centralized visibility and management platform; Cloud Security solutions; Identity Management solutions, including lifecycle management, identity flows, identity compliance, and directory services; and Secure Browser. The company serves financial services, manufacturing, insurance, healthcare, energy and utilities, transportation, retail, technology, and telecommunications industries; and government agencies. The company was incorporated in 1996 and is headquartered in Petah Tikva, Israel.
Receive News & Ratings for Dropbox Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Dropbox and related companies with MarketBeat.com's FREE daily email newsletter.
