Critical Contrast: Upland Software (NASDAQ:UPLD) versus Dropbox (NASDAQ:DBX)

Upland Software (NASDAQ:UPLD) and Dropbox (NASDAQ:DBX) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, earnings, analyst recommendations, institutional ownership, dividends, valuation and risk.

Institutional & Insider Ownership

77.8% of Upland Software shares are owned by institutional investors. Comparatively, 94.8% of Dropbox shares are owned by institutional investors. 11.3% of Upland Software shares are owned by company insiders. Comparatively, 28.6% of Dropbox shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Upland Software and Dropbox”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Upland Software	$278.95 million	0.28	-$179.87 million	($4.52)	-0.62
Dropbox	$2.55 billion	3.13	$453.60 million	$1.41	18.74

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Upland Software	-44.92%	50.06%	2.64%
Dropbox	17.75%	-132.63%	19.58%

Analyst Recommendations

This is a summary of current ratings and target prices for Upland Software and Dropbox, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Upland Software	1	1	2	1	2.60
Dropbox	0	2	1	0	2.33

Upland Software currently has a consensus target price of $3.75, suggesting a potential upside of 32.98%. Dropbox has a consensus target price of $27.67, suggesting a potential upside of 4.72%. Given Upland Software’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Upland Software is more favorable than Dropbox.

Risk and Volatility

Upland Software has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500. Comparatively, Dropbox has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500.

Summary

Dropbox beats Upland Software on 9 of the 15 factors compared between the two stocks.

About Upland Software

Upland Software, Inc., together with its subsidiaries, provides cloud-based software applications under the Upland brand name in the United States, the United Kingdom, Canada, and internationally. It offers software applications that enable organizations to plan, manage and execute projects, and work in the areas of marketing, sales, contact center, knowledge management, project management, information technology, business operations, human resources, and legal. The company also provides professional services, such as implementation, data extraction, integration and configuration, and training services, as well as customer support services. It serves corporations, government agencies, and small and medium-sized businesses in the financial, consulting, technology, manufacturing, media, telecommunication, insurance, non-profit healthcare, life sciences, retail, and hospitality sectors. The company was formerly known as Silverback Enterprise Group, Inc. and changed its name to Upland Software, Inc. in November 2013. Upland Software, Inc. was incorporated in 2010 and is headquartered in Austin, Texas.

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.