Critical Contrast: QuoteMedia (OTCMKTS:QMCI) versus Dropbox (NASDAQ:DBX)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
QuoteMedia	-11.64%	N/A	-40.59%
Dropbox	18.71%	-30.01%	17.41%

Analyst Recommendations

This is a summary of recent recommendations for QuoteMedia and Dropbox, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QuoteMedia	0	1	0	0	2.00
Dropbox	2	3	1	0	1.83

Dropbox has a consensus price target of $27.00, suggesting a potential upside of 3.11%. Given Dropbox’s higher probable upside, analysts plainly believe Dropbox is more favorable than QuoteMedia.

Volatility & Risk

QuoteMedia has a beta of 0.01, suggesting that its stock price is 99% less volatile than the S&P 500. Comparatively, Dropbox has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.

Earnings and Valuation

This table compares QuoteMedia and Dropbox”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QuoteMedia	$20.25 million	0.67	-$2.32 million	($0.03)	-5.03
Dropbox	$2.53 billion	2.42	$508.40 million	$1.83	14.31

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

Institutional & Insider Ownership

94.8% of Dropbox shares are held by institutional investors. 47.1% of QuoteMedia shares are held by company insiders. Comparatively, 35.5% of Dropbox shares are held 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.

Summary

Dropbox beats QuoteMedia on 11 of the 14 factors compared between the two stocks.

About QuoteMedia

QuoteMedia, Inc. provides financial data, market research information, analytics, news feeds, and financial software solutions to online brokerages, banks, clearing firms, financial service companies, media portals, and public corporations worldwide. It collects, aggregates, and delivers delayed and real-time financial data content through the Internet. The company also offers market information and services, including streaming stock market data feeds, research and analysis information, content applications, portfolio management systems, software products, corporate investor relations provisioning, news services, mobile apps, and custom development. In addition, its data feeds coverage includes equities, options, futures, commodities, currencies, mutual funds, ETFs, and indices. Further, the company provides financial data delivery application products and components comprising quote modules, charts, market movers, news, watch lists, tickers, market summaries, option chains, filings, fundamentals, investor relations solutions, stock and fund screeners, and others; and QMod, a web delivery system for delivering market data content to Web platforms. Additionally, it offers portfolio managements systems, including Quotestream Desktop, We, and Mobile, a Web-delivered, embedded application providing real-time, tick-by-tick, streaming market quotes and research information; Quotestream Professional that offers low-latency tick-by-tick data, customizable screens, advanced charting, comprehensive technical analysis, news, and research data for financial services professionals; Web Portfolio Manager, which provides immediate web access to detailed quote data, market and company news, charting, depth/level II, filings, historical data, snap quotes, and others; and Quotestream Connect that delivers real time data feeds to individual users to power third party applications. The company was incorporated in 1992 and is headquartered in Fountain Hills, Arizona.

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.