Data Storage (NASDAQ:DTST) & Dropbox (NASDAQ:DBX) Head-To-Head Analysis

Data Storage (NASDAQ:DTST) and Dropbox (NASDAQ:DBX) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Data Storage and Dropbox, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Data Storage	2	1	0	0	1.33
Dropbox	1	2	1	0	2.00

Dropbox has a consensus target price of $31.33, suggesting a potential upside of 27.76%. Given Dropbox’s stronger consensus rating and higher possible upside, analysts clearly believe Dropbox is more favorable than Data Storage.

Earnings & Valuation

This table compares Data Storage and Dropbox”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Data Storage	$25.37 million	1.26	$520,000.00	$2.14	2.06
Dropbox	$2.55 billion	2.49	$452.30 million	$1.77	13.86

Dropbox has higher revenue and earnings than Data Storage. Data Storage 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

Data Storage has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500. Comparatively, Dropbox has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.

Profitability

This table compares Data Storage and Dropbox’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Data Storage	81.52%	-1.13%	-0.94%
Dropbox	19.87%	-49.51%	19.48%

Institutional & Insider Ownership

11.6% of Data Storage shares are owned by institutional investors. Comparatively, 94.8% of Dropbox shares are owned by institutional investors. 43.8% of Data Storage shares are owned by insiders. Comparatively, 28.6% of Dropbox shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Dropbox beats Data Storage on 9 of the 14 factors compared between the two stocks.

About Data Storage

Data Storage Corporation provides data management and cloud solutions in the United States and internationally. It offers a suite of multi-cloud IT solutions, including cyber security solutions, which comprise ezSecurity, a security solution for endpoint security, system assessments, and risk analysis, as well as IBM system protection, including Ransomware defense. The company also provides data protection and recovery solutions, such as ezVault for offsite data protection; ezRecovery for fast data recovery; ezAvailability for real-time data replication with minimal recovery objectives; and ezMirror for data mirroring at the storage level. In addition, it offers cloud hosted production systems comprising ezHost, which delivers managed cloud services; and voice and data solutions, including Nexxis, which specializes in voice over internet protocol, internet access, and data transport solutions, which comprise dedicated internet services, SD-WAN options, and a cloud-based PBX solution. The company offers its solutions and services to businesses in healthcare, banking and finance, distribution services, manufacturing, construction, education, and government industries. Data Storage Corporation was founded in 2001 and is headquartered in Melville, New York.

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.