Trade Desk (NASDAQ:TTD – Get Free Report) and Dropbox (NASDAQ:DBX – Get Free Report) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.
Institutional and Insider Ownership
67.8% of Trade Desk shares are owned by institutional investors. Comparatively, 94.8% of Dropbox shares are owned by institutional investors. 10.0% of Trade Desk shares are owned by insiders. Comparatively, 30.0% of Dropbox shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Trade Desk and Dropbox”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Trade Desk | $2.44 billion | 7.64 | $393.08 million | $0.87 | 44.38 |
| Dropbox | $2.55 billion | 3.04 | $452.30 million | $1.77 | 16.92 |
Dropbox has higher revenue and earnings than Trade Desk. Dropbox is trading at a lower price-to-earnings ratio than Trade Desk, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and price targets for Trade Desk and Dropbox, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Trade Desk | 3 | 12 | 21 | 0 | 2.50 |
| Dropbox | 1 | 3 | 1 | 0 | 2.00 |
Trade Desk presently has a consensus target price of $77.19, suggesting a potential upside of 99.92%. Dropbox has a consensus target price of $31.75, suggesting a potential upside of 6.05%. Given Trade Desk’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Trade Desk is more favorable than Dropbox.
Volatility and Risk
Trade Desk has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, Dropbox has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500.
Profitability
This table compares Trade Desk and Dropbox’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Trade Desk | 15.72% | 16.00% | 7.40% |
| Dropbox | 19.87% | -49.51% | 19.48% |
About Trade Desk
The Trade Desk, Inc. operates as a technology company in the United States and internationally. The company offers a self-service cloud-based platform that allows buyers to plan, manage, optimize, and measure data-driven digital advertising campaigns across various ad formats and channels, including video, display, audio, digital-out-of-home, native, and social on various devices, such as computers, mobile devices, televisions, and streaming devices. It provides data and other value-added services. The company serves advertising agencies, brands, and other service providers for advertisers. The Trade Desk, Inc. was incorporated in 2009 and is headquartered in Ventura, California.
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.
Receive News & Ratings for Trade Desk Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Trade Desk and related companies with MarketBeat.com's FREE daily email newsletter.
