Amazon.com vs Dropbox

Amazon.com and Dropbox are two prominent players in the technology sector, each offering unique services to consumers and investors alike. Amazon.com, the e-commerce giant, has seen impressive growth over the years and continues to dominate the online retail market. On the other hand, Dropbox, the cloud storage company, has carved out a niche for itself in the digital storage space. Both companies have attracted attention from investors, but their stocks have shown differing performance trends. Let's examine the factors driving the performance of Amazon.com and Dropbox stocks.

Amazon.com or Dropbox?

When comparing Amazon.com and Dropbox, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Amazon.com and Dropbox.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Amazon.com has a dividend yield of -%, while Dropbox has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Amazon.com reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Dropbox reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Amazon.com P/E ratio at 44.14 and Dropbox's P/E ratio at 14.50. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Amazon.com P/B ratio is 8.29 while Dropbox's P/B ratio is -22.81.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Amazon.com has seen a 5-year revenue growth of 1.33%, while Dropbox's is 0.89%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amazon.com's ROE at 21.20% and Dropbox's ROE at -200.65%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $184.58 for Amazon.com and $25.74 for Dropbox. Over the past year, Amazon.com's prices ranged from $118.35 to $201.20, with a yearly change of 70.00%. Dropbox's prices fluctuated between $20.68 and $33.43, with a yearly change of 61.65%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.