Dropbox vs Oracle Which Is More Promising?

Dropbox and Oracle are two prominent technology companies that offer different services in the cloud computing space. Dropbox is known for its cloud storage and file sharing platform, while Oracle is a giant in the enterprise software and database management industry. Both companies have seen fluctuations in their stock prices over the years, with Dropbox being a popular choice among retail investors and Oracle being favored by institutional investors. Understanding the dynamics of their respective businesses and market performance is essential for investors looking to make informed decisions in the stock market.

Dropbox or Oracle?

When comparing Dropbox and Oracle, 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 Oracle.

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 Oracle has a dividend yield of 1.06%. 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, Oracle reports a 5-year dividend growth of 14.87% year and a payout ratio of 40.11%.

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 12.80 and Oracle's P/E ratio at 47.57. 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 -16.71 while Oracle's P/B ratio is 46.34.

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 Oracle's is 0.92%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Dropbox's ROE at -209.53% and Oracle's ROE at 146.49%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $27.12 for Dropbox and $187.84 for Oracle. Over the past year, Dropbox's prices ranged from $20.68 to $33.43, with a yearly change of 61.65%. Oracle's prices fluctuated between $99.26 and $191.45, with a yearly change of 92.88%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.