Head-To-Head Review: 3D Systems (NYSE:DDD) versus Dropbox (NASDAQ:DBX)

3D Systems (NYSE:DDD) and Dropbox (NASDAQ:DBX) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, profitability, risk, analyst recommendations and dividends.

Earnings & Valuation

This table compares 3D Systems and Dropbox’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
3D Systems $557.24 million 6.18 -$149.59 million ($0.40) -68.70
Dropbox $1.91 billion 6.28 -$256.30 million $0.30 100.47

3D Systems has higher earnings, but lower revenue than Dropbox. 3D Systems is trading at a lower price-to-earnings ratio than Dropbox, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

3D Systems has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, Dropbox has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for 3D Systems and Dropbox, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
3D Systems 1 6 0 0 1.86
Dropbox 1 1 4 0 2.50

3D Systems currently has a consensus target price of $27.00, suggesting a potential downside of 2.49%. Dropbox has a consensus target price of $35.75, suggesting a potential upside of 18.53%. Given Dropbox’s stronger consensus rating and higher possible upside, analysts plainly believe Dropbox is more favorable than 3D Systems.

Profitability

This table compares 3D Systems and Dropbox’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
3D Systems -9.27% -0.33% -0.20%
Dropbox -8.73% 108.39% 9.19%

Institutional & Insider Ownership

66.5% of 3D Systems shares are held by institutional investors. Comparatively, 67.2% of Dropbox shares are held by institutional investors. 3.6% of 3D Systems shares are held by insiders. Comparatively, 30.8% of Dropbox shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Dropbox beats 3D Systems on 11 of the 14 factors compared between the two stocks.

About 3D Systems

3D Systems Corp. is a holding company, which engages in the provision of comprehensive three-dimensional printing solutions. It offers a comprehensive range of 3D printers, materials, software, haptic design tools, 3D scanners, and virtual surgical simulators. The company was founded by Charles W. Hull in 1986 and is headquartered in Rock Hill, SC.

About Dropbox

Dropbox, Inc. is a collaboration platform that’s transforming the way people and teams work together. It offers following products: Dropbox Basic, Plus, Professional and Business. The Dropbox Basic is the simple, powerful home for photos, videos, docs, and other files. Its users also get access to new product Dropbox Paper, a collaborative workspace that helps teams create and share early ideas, and work with any type of content, in one centralized place. The Dropbox Plus provides unrivalled sync along with 1 TB of space, powerful sharing features, and increased control. The Dropbox Professional allows independent workers to store, share, and track their work from one place. The Dropbox Business is designed for small to enterprise level businesses, which users get full visibility and control over how critical work files are accessed and shared while letting team members continue to use the products. Dropbox was founded by Andrew W. Houston and Arash Ferdowsi in June 2007 and is headquartered in San Francisco, CA.

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