Dropbox (NASDAQ:DBX – Get Free Report) and Zillow Group (NASDAQ:Z – Get Free Report) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.
Insider & Institutional Ownership
94.8% of Dropbox shares are owned by institutional investors. Comparatively, 71.0% of Zillow Group shares are owned by institutional investors. 30.0% of Dropbox shares are owned by company insiders. Comparatively, 25.0% of Zillow Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings and price targets for Dropbox and Zillow Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dropbox | 1 | 3 | 1 | 0 | 2.00 |
| Zillow Group | 1 | 8 | 3 | 2 | 2.43 |
Valuation & Earnings
This table compares Dropbox and Zillow Group”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Dropbox | $2.52 billion | 2.50 | $508.40 million | $1.86 | 14.07 |
| Zillow Group | $2.58 billion | 4.26 | $23.00 million | $0.09 | 509.11 |
Dropbox has higher earnings, but lower revenue than Zillow Group. Dropbox is trading at a lower price-to-earnings ratio than Zillow Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Dropbox and Zillow Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Dropbox | 20.17% | -37.47% | 18.80% |
| Zillow Group | 0.89% | 0.56% | 0.48% |
Volatility and Risk
Dropbox has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, Zillow Group has a beta of 2.1, indicating that its stock price is 110% more volatile than the S&P 500.
Summary
Zillow Group beats Dropbox on 9 of the 15 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 Zillow Group
Zillow Group, Inc. operates real estate brands in mobile applications and Websites in the United States. The company offers premier agent and rentals marketplaces, new construction marketplaces, advertising, display advertising, and business technology solutions, as well as dotloop and floor plans. It also provides mortgage originations and the sale of mortgages, and advertising to mortgage lenders and other mortgage professionals; and title and escrow services. In addition, the company's brand portfolio includes Zillow Premier Agent, Zillow Home Loans, Zillow Rentals, Trulia, StreetEasy, HotPads, and Out East; and a suite of marketing software and technology solutions for the real estate industry, including ShowingTime+, Spruce, and Follow Up Boss. Zillow Group, Inc. was incorporated in 2004 and is headquartered in Seattle, Washington.
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