Best Buy vs Dropbox Which Is More Lucrative?

Best Buy and Dropbox are two companies that operate in very different sectors of the market. Best Buy is a retail giant specializing in consumer electronics and appliances, while Dropbox is a cloud storage and file hosting service. Both companies have seen their stocks perform well in recent years, with Best Buy benefiting from strong consumer demand for technology products and Dropbox capitalizing on the growing need for online storage solutions. Investors looking to diversify their portfolios may consider these two stocks for their potential long-term growth prospects.

Best Buy or Dropbox?

When comparing Best Buy 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 Best Buy 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. Best Buy has a dividend yield of 5.11%, while Dropbox has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Best Buy reports a 5-year dividend growth of 15.38% year and a payout ratio of 63.81%. 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 Best Buy P/E ratio at 15.70 and Dropbox's P/E ratio at 12.58. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Best Buy P/B ratio is 6.37 while Dropbox's P/B ratio is -16.41.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Best Buy has seen a 5-year revenue growth of 0.47%, while Dropbox's is 0.89%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Best Buy's ROE at 41.81% and Dropbox's ROE at -209.53%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $90.53 for Best Buy and $27.21 for Dropbox. Over the past year, Best Buy's prices ranged from $62.92 to $103.71, with a yearly change of 64.83%. 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.