Dropbox (NASDAQ:DBX – Get Free Report) and Sohu.com (NASDAQ:SOHU – Get Free Report) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.
Profitability
This table compares Dropbox and Sohu.com’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% |
| Sohu.com | 67.44% | 20.67% | 13.84% |
Earnings & Valuation
This table compares Dropbox and Sohu.com”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Dropbox | $2.52 billion | 2.48 | $508.40 million | $1.86 | 13.91 |
| Sohu.com | $584.33 million | 0.82 | $394.10 million | $14.08 | 1.14 |
Dropbox has higher revenue and earnings than Sohu.com. Sohu.com is trading at a lower price-to-earnings ratio than Dropbox, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Dropbox has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, Sohu.com has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Dropbox and Sohu.com, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dropbox | 1 | 3 | 1 | 0 | 2.00 |
| Sohu.com | 0 | 1 | 2 | 0 | 2.67 |
Dropbox presently has a consensus target price of $27.50, indicating a potential upside of 6.30%. Sohu.com has a consensus target price of $20.00, indicating a potential upside of 25.00%. Given Sohu.com’s stronger consensus rating and higher possible upside, analysts plainly believe Sohu.com is more favorable than Dropbox.
Insider & Institutional Ownership
94.8% of Dropbox shares are held by institutional investors. Comparatively, 33.0% of Sohu.com shares are held by institutional investors. 30.0% of Dropbox shares are held by company insiders. Comparatively, 21.1% of Sohu.com 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.
Summary
Dropbox beats Sohu.com on 8 of the 14 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 Sohu.com
Sohu.com Limited engages in the provision of online media, video, and game products and services on personal computers (PCs) and mobile devices in China. It operates through two segments: Sohu and Changyou. The company offers online news, information, and content services through the mobile phone application Sohu News APP, mobile portal m.sohu.com, and www.sohu.com for PCs; and online video content and services through mobile phone application Sohu Video APP and tv.sohu.com, as well as ifox, a video application for PC. It also operates Focus (www.focus.cn), which provides online real estate information and services; and 17173.com website, which provides news, electronic forums, online videos, and other online game information services to game players, as well as offers mobile game distribution services. In addition, the company offers interactive online games for PCs and mobile devices. Further, it provides paid subscription and interactive broadcasting services. The company was incorporated in 1996 and is headquartered in Beijing, China.
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