Dropbox (NASDAQ:DBX – Get Free Report) and Sohu.com (NASDAQ:SOHU – Get Free Report) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.
Analyst Ratings
This is a breakdown of current ratings and target prices for Dropbox and Sohu.com, as reported by MarketBeat.com.
| 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 currently has a consensus price target of $27.50, indicating a potential upside of 2.84%. Sohu.com has a consensus price target of $20.00, indicating a potential upside of 22.77%. Given Sohu.com’s stronger consensus rating and higher possible upside, analysts clearly believe Sohu.com is more favorable than Dropbox.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Dropbox | $2.52 billion | 2.56 | $508.40 million | $1.86 | 14.38 |
| Sohu.com | $584.33 million | 0.84 | $394.10 million | $14.08 | 1.16 |
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.
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% |
Risk and Volatility
Dropbox has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, Sohu.com has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500.
Insider and Institutional Ownership
94.8% of Dropbox shares are owned by institutional investors. Comparatively, 33.0% of Sohu.com shares are owned by institutional investors. 28.6% of Dropbox shares are owned by insiders. Comparatively, 21.1% of Sohu.com shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
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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