Dropbox vs Salesforce Which Is a Smarter Choice?

Dropbox and Salesforce are two major players in the technology industry, each known for their innovative cloud-based solutions. Dropbox provides file storage and collaboration services, while Salesforce offers customer relationship management tools. Both companies have seen significant growth in recent years, but their stock performances have differed. Dropbox has faced challenges in maintaining steady stock performance, while Salesforce has consistently outperformed the market. Investors may need to carefully consider the strengths and weaknesses of each company before making investment decisions.

Dropbox or Salesforce?

When comparing Dropbox and Salesforce, 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 Salesforce.

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 Salesforce has a dividend yield of 0.34%. 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, Salesforce reports a 5-year dividend growth of 0.00% year and a payout ratio of 14.69%.

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 Salesforce's P/E ratio at 43.09. 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 Salesforce's P/B ratio is 5.78.

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 Salesforce's is 1.16%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Dropbox's ROE at -169.60% and Salesforce's ROE at 13.35%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $28.84 for Dropbox and $350.79 for Salesforce. Over the past year, Dropbox's prices ranged from $20.68 to $33.43, with a yearly change of 61.65%. Salesforce's prices fluctuated between $212.00 and $369.00, with a yearly change of 74.06%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.