Dropbox vs Amazon.com Which Is More Favorable?

Dropbox and Amazon.com are two prominent technology companies in the stock market. Dropbox is a cloud storage service provider, known for its user-friendly interface and seamless file sharing capabilities. Meanwhile, Amazon.com is an e-commerce giant that has diversified into various industries, including cloud computing with Amazon Web Services. Both companies have shown steady growth in recent years, but their stocks have different risk profiles and growth potential. Investors need to consider various factors, such as market trends and financial performance, before deciding which stock to invest in.

Dropbox or Amazon.com?

When comparing Dropbox and Amazon.com, 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 Dropbox and Amazon.com.

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. Dropbox has a dividend yield of -%, while Amazon.com has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Dropbox reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Amazon.com 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 Dropbox P/E ratio at 16.21 and Amazon.com's P/E ratio at 47.61. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Dropbox P/B ratio is -17.12 while Amazon.com's P/B ratio is 9.16.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Dropbox has seen a 5-year revenue growth of 0.89%, while Amazon.com's is 1.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Dropbox's ROE at -169.60% and Amazon.com's ROE at 21.82%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $28.84 for Dropbox and $225.69 for Amazon.com. Over the past year, Dropbox's prices ranged from $20.68 to $33.43, with a yearly change of 61.65%. Amazon.com's prices fluctuated between $143.64 and $230.08, with a yearly change of 60.18%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.