Dropbox vs Vimeo Which Should You Buy?

Dropbox and Vimeo are two popular companies in the technology and media industries, each offering unique services and products to users and investors. Dropbox, a cloud-based file hosting service, has been a staple for businesses and individuals looking to store and share files securely. On the other hand, Vimeo is a video-sharing platform that caters to creative professionals and content creators. Both companies have shown strong growth potential in recent years, making them attractive options for investors seeking exposure to the technology and media sectors.

Dropbox or Vimeo?

When comparing Dropbox and Vimeo, 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 Vimeo.

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 Vimeo 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, Vimeo 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 Vimeo's P/E ratio at 33.43. 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 Vimeo's P/B ratio is 2.77.

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 Vimeo's is 1.14%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Dropbox's ROE at -169.60% and Vimeo's ROE at 8.56%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $28.75 for Dropbox and $6.82 for Vimeo. Over the past year, Dropbox's prices ranged from $20.68 to $33.43, with a yearly change of 61.65%. Vimeo's prices fluctuated between $3.43 and $7.28, with a yearly change of 112.10%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.