Analyzing Duos Technologies Group (NASDAQ:DUOT) and Dropbox (NASDAQ:DBX)

Duos Technologies Group (NASDAQ:DUOT) and Dropbox (NASDAQ:DBX) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, risk, valuation, earnings, institutional ownership, analyst recommendations and profitability.

Profitability

This table compares Duos Technologies Group and Dropbox’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Duos Technologies Group	-143.17%	-271.06%	-64.01%
Dropbox	17.75%	-132.63%	19.58%

Risk & Volatility

Duos Technologies Group has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, Dropbox has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500.

Institutional & Insider Ownership

42.6% of Duos Technologies Group shares are held by institutional investors. Comparatively, 94.8% of Dropbox shares are held by institutional investors. 11.6% of Duos Technologies Group shares are held by company insiders. Comparatively, 30.0% of Dropbox shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Duos Technologies Group and Dropbox”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Duos Technologies Group	$11.16 million	8.30	-$11.24 million	($1.20)	-6.63
Dropbox	$2.54 billion	3.23	$453.60 million	$1.53	19.03

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Duos Technologies Group and Dropbox, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Duos Technologies Group	0	0	2	0	3.00
Dropbox	0	2	1	0	2.33

Duos Technologies Group currently has a consensus price target of $11.50, suggesting a potential upside of 44.65%. Dropbox has a consensus price target of $31.00, suggesting a potential upside of 6.46%. Given Duos Technologies Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe Duos Technologies Group is more favorable than Dropbox.

Summary

Dropbox beats Duos Technologies Group on 9 of the 14 factors compared between the two stocks.

About Duos Technologies Group

Duos Technologies Group, Inc. designs, develops, deploys, and operates intelligent technology solutions in North America. The company provides solutions, such as Centraco, an enterprise information management software platform that consolidates data and events from multiple sources into a unified and distributive user interface; and truevue360, an integrated platform to develop and deploy artificial intelligence algorithms, including machine learning, computer vision, object detection, and deep neural network-based processing for real-time applications. Its proprietary applications include Railcar Inspection Portal that provides freight and transit railroad customers and select government agencies the ability to conduct fully automated railcar inspections of trains while they are moving at full speed. It also develops Automated Logistics Information System, which automates gatehouse operations, as well as develops solutions for rail, trucking, aviation, and other vehicle-based processes. In addition, the company provides consulting services, including consulting and auditing; software licensing with optional hardware sales; customer service training; and maintenance support. The company operates its services under the duostech brand. The company is headquartered in Jacksonville, Florida.

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.