Dropbox (NASDAQ:DBX) vs. Trivago N.V. ADS (NASDAQ:TRVG) Head-To-Head Review

Dropbox (NASDAQ:DBX) and Trivago N.V. ADS (NASDAQ:TRVG) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Insider and Institutional Ownership

94.8% of Dropbox shares are held by institutional investors. Comparatively, 4.5% of Trivago N.V. ADS shares are held by institutional investors. 35.5% of Dropbox shares are held by company insiders. Comparatively, 6.5% of Trivago N.V. ADS shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Dropbox has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, Trivago N.V. ADS has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.

Profitability

This table compares Dropbox and Trivago N.V. ADS’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%
Trivago N.V. ADS	2.28%	7.90%	4.69%

Valuation & Earnings

This table compares Dropbox and Trivago N.V. ADS”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dropbox	$2.52 billion	2.30	$508.40 million	$1.86	12.91
Trivago N.V. ADS	$548.91 million	0.36	$12.69 million	$0.05	55.80

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Dropbox and Trivago N.V. ADS, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dropbox	2	3	1	0	1.83
Trivago N.V. ADS	1	4	1	0	2.00

Dropbox currently has a consensus target price of $27.50, indicating a potential upside of 14.49%. Trivago N.V. ADS has a consensus target price of $3.87, indicating a potential upside of 38.71%. Given Trivago N.V. ADS’s stronger consensus rating and higher probable upside, analysts plainly believe Trivago N.V. ADS is more favorable than Dropbox.

Summary

Dropbox beats Trivago N.V. ADS on 8 of the 13 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 Trivago N.V. ADS

trivago N.V., together with its subsidiaries, operates a hotel and accommodation search platform in the United States, Germany, the United Kingdom, Canada, Japan, and internationally. It offers an online meta-search for hotels and accommodation through online travel agencies, hotel chains, and independent hotels. The company provides travel search for different types of accommodations, such as hotels, vacation rentals, and apartments; and enable advertiser access through website and apps. In addition, it offers access to its platform through various localized websites and apps in various languages. The company was incorporated in 2005 and is headquartered in Düsseldorf, Germany. trivago N.V. operates as a subsidiary of Expedia Lodging Partner Services Sarl.