Dropbox (NASDAQ:DBX) & DeNA (OTCMKTS:DNACF) Financial Analysis

Dropbox (NASDAQ:DBX) and DeNA (OTCMKTS:DNACF) are both mid-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Profitability

This table compares Dropbox and DeNA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dropbox	18.71%	-30.01%	17.41%
DeNA	13.28%	7.33%	5.12%

Volatility and Risk

Dropbox has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500. Comparatively, DeNA has a beta of -0.26, suggesting that its share price is 126% less volatile than the S&P 500.

Institutional and Insider Ownership

94.8% of Dropbox shares are owned by institutional investors. 35.5% of Dropbox shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for Dropbox and DeNA, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dropbox	2	3	1	0	1.83
DeNA	0	0	0	0	0.00

Dropbox presently has a consensus target price of $27.00, suggesting a potential downside of 6.61%. Given Dropbox’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Dropbox is more favorable than DeNA.

Earnings and Valuation

This table compares Dropbox and DeNA”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dropbox	$2.53 billion	2.67	$508.40 million	$1.83	15.80
DeNA	$981.17 million	1.97	$125.72 million	$1.19	13.32

Dropbox has higher revenue and earnings than DeNA. DeNA is trading at a lower price-to-earnings ratio than Dropbox, indicating that it is currently the more affordable of the two stocks.

Summary

Dropbox beats DeNA on 13 of the 14 factors compared between the two stocks.

About Dropbox

Dropbox, Inc. provides a content collaboration platform worldwide. The company's platform allows individuals, families, teams, and organizations to collaborate and sign up for free through its website or app, as well as upgrade to a paid subscription plan for premium features. It serves customers in professional services, technology, media, education, industrial, consumer and retail, and financial services industries. The company was formerly known as Evenflow, Inc. and changed its name to Dropbox, Inc. in October 2009. Dropbox, Inc. was incorporated in 2007 and is headquartered in San Francisco, California.

About DeNA

DeNA Co., Ltd. develops and operates mobile and online services worldwide. It operates Mobage, an entertainment platform; Yahoo! Mobage, which offers social games for PC browsers; AndApp, a platform that allows users to play mobile game apps on PC browsers under the same user account; Pococha, a social live streaming community; and IRIAM, an app which allows to livestream as an anime character. The company also operates SHOWROOM, a virtual stage where fans can watch their artists perform live while interacting with them in real time; MYCODE, a direct-to-consumer genetic testing service; kencom, which supports health insurance societies to manage their members’ health data; Haretoke, a web service which provides daily support for millennial women; Caradamo that offers diet support; and ONSEI, an app that uses AI to check for changes in cognitive function. In addition, it operates MENKYO, which enables cognitive function test for elderly drivers seeking license renewal; SHINRI-ADAS, a cognitive functional test; MRI-TAISEKI, a system that analyses brain DICOM images; Join, a communication app for medical professionals; MySOS, a life-saving and health support app with health and medical record for the user and their family; and DENA SPORTS GROUP, Yokohama DeNA Baystars, Kawasaki Brave Thunders, S.C.SAGAMIHARA, and DeNA Athletics Elite sports teams. Further, the company operates Mobaoku, which allows users to manage their auction items and bids from mobile phones; Anyca, a mobile app for peer-to-peer car sharing; SOMPO DE NORU, a car leasing service; GO, a taxi dispatch app; DRIVE CHART, an accident reduction support service; anone, a c ommunication service for seniors; dot-i, a security system; Coopel, a cloud robotic process automation service; PLAYBACK 9, a NFT service; Easy Ride, a robo-vehicle mobility service; Manga Box, a weekly manga magazine app; PICKFIVE, a NFT card game; and NFT collections. The company was incorporated in 1999 and is based in Tokyo, Japan.