Dropbox vs Expedia Which Should You Buy?

Dropbox and Expedia are two well-known companies in the technology and travel industries, respectively. While Dropbox is a cloud-based file storage and sharing service, Expedia is a leading online travel agency. Both companies have experienced fluctuations in their stock prices in recent years, with Dropbox focusing on expanding its user base and Expedia facing challenges from competitors. Investors often compare the performance of these two stocks to make informed decisions on where to allocate their resources.

Dropbox or Expedia?

When comparing Dropbox and Expedia, 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 Expedia.

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 Expedia 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, Expedia 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 16.32 and Expedia's P/E ratio at 23.19. 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 -17.24 while Expedia's P/B ratio is 18.72.

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 Expedia's is 0.18%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Dropbox's ROE at -169.60% and Expedia's ROE at 92.08%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $28.75 for Dropbox and $189.48 for Expedia. Over the past year, Dropbox's prices ranged from $20.68 to $33.43, with a yearly change of 61.65%. Expedia's prices fluctuated between $107.25 and $192.28, with a yearly change of 79.28%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.