Head to Head Review: Dropbox (NASDAQ:DBX) & PDF Solutions (NASDAQ:PDFS)

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

Insider and Institutional Ownership

61.4% of Dropbox shares are held by institutional investors. Comparatively, 76.6% of PDF Solutions shares are held by institutional investors. 25.1% of Dropbox shares are held by company insiders. Comparatively, 11.5% of PDF Solutions shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

Dropbox has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, PDF Solutions has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500.

Valuation & Earnings

This table compares Dropbox and PDF Solutions’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dropbox $2.16 billion 3.51 $335.80 million $0.94 21.46
PDF Solutions $111.06 million 7.73 -$21.49 million ($0.48) -48.37

Dropbox has higher revenue and earnings than PDF Solutions. PDF Solutions 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 Dropbox and PDF Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dropbox 16.66% -146.35% 11.77%
PDF Solutions -14.99% -8.20% -6.63%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Dropbox and PDF Solutions, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dropbox 0 1 4 0 2.80
PDF Solutions 0 0 3 0 3.00

Dropbox currently has a consensus target price of $33.25, indicating a potential upside of 64.85%. PDF Solutions has a consensus target price of $34.25, indicating a potential upside of 47.50%. Given Dropbox’s higher probable upside, equities research analysts plainly believe Dropbox is more favorable than PDF Solutions.

Summary

Dropbox beats PDF Solutions on 9 of the 14 factors compared between the two stocks.

Dropbox Company Profile (Get Rating)

Dropbox, Inc. provides a content collaboration platform worldwide. Its 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. As of December 31, 2021, the company had approximately 700 million registered users. 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.

PDF Solutions Company Profile (Get Rating)

PDF Solutions, Inc. provides proprietary software and physical intellectual property products for integrated circuit designs, electrical measurement hardware tools, proven methodologies, and professional services in the United States, China, Japan, Taiwan, and internationally. The company offers Exensio software products, such as Manufacturing Analytics that stores collected data in a common environment with a consistent view for enabling product engineers to identify and analyze production yield, performance, reliability, and other issues; Process Control that provides failure detection and classification capabilities for monitoring, alarming, and controlling manufacturing tool sets; Test Operations that offers data collection and analysis capabilities; and Assembly Operations that provides device manufacturers with the capability to link assembly and packaging data, including fabrication and characterization data over the product life cycle. It also provides design-for-inspection (DFI) Systems, such as DFI on-chip instruments; eProbe non-contactless E-beam tool; and Characterization Vehicle (CV) system, which includes CV test chips and pdFasTest electrical testers, as well as Exensio characterization software, designed to analyze the measurements collected from DFI on-chip instruments using the eProbe tool. In addition, the company offers Cimetrix software products that enables equipment manufacturers to provide industry standard interfaces on their products; and software-as-a-service, software related services, and characterization services. It sells its technologies and services through direct sales force, service teams, and strategic alliances to integrated device manufacturers, fabless semiconductor companies, foundries, equipment manufacturers, electronics manufacturing suppliers, original device manufacturers, out-sourced semiconductor assembly and test, and system houses. The company was founded in 1991 and is headquartered in Santa Clara, California.

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