Dropbox (NASDAQ:DBX) and Veeva Systems (NYSE:VEEV) are both large-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Dropbox and Veeva Systems, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Dropbox | 1 | 2 | 3 | 0 | 2.33 |
Veeva Systems | 1 | 5 | 15 | 0 | 2.67 |
Dropbox presently has a consensus target price of $26.40, indicating a potential upside of 0.08%. Veeva Systems has a consensus target price of $299.8696, indicating a potential upside of 9.81%. Given Veeva Systems' stronger consensus rating and higher probable upside, analysts plainly believe Veeva Systems is more favorable than Dropbox.
Risk & Volatility
Dropbox has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, Veeva Systems has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.
Insider and Institutional Ownership
62.0% of Dropbox shares are held by institutional investors. Comparatively, 77.5% of Veeva Systems shares are held by institutional investors. 30.8% of Dropbox shares are held by insiders. Comparatively, 14.4% of Veeva Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Dropbox and Veeva Systems' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Dropbox | $1.66 billion | 6.59 | $-52,700,000.00 | N/A | N/A |
Veeva Systems | $1.10 billion | 37.65 | $301.12 million | $1.62 | 168.56 |
Veeva Systems has lower revenue, but higher earnings than Dropbox.
Profitability
This table compares Dropbox and Veeva Systems' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Dropbox | 4.47% | 15.02% | 4.45% |
Veeva Systems | 24.88% | 15.73% | 12.12% |
Summary
Veeva Systems beats Dropbox on 9 of the 13 factors compared between the two stocks.