Critical Comparison: CyberAgent (OTCMKTS:CYGIY) versus Dropbox (NASDAQ:DBX)

CyberAgent (OTCMKTS:CYGIY) and Dropbox (NASDAQ:DBX) are both mid-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, analyst recommendations and valuation.

Volatility & Risk

CyberAgent has a beta of 0.59, suggesting that its stock price is 41% less 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 CyberAgent and Dropbox’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CyberAgent	3.62%	14.04%	7.00%
Dropbox	19.87%	-49.51%	19.48%

Institutional and Insider Ownership

94.8% of Dropbox shares are owned by institutional investors. 30.0% of Dropbox 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.

Analyst Recommendations

This is a summary of current ratings and recommmendations for CyberAgent and Dropbox, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CyberAgent	0	0	0	0	0.00
Dropbox	1	3	1	0	2.00

Dropbox has a consensus target price of $31.75, suggesting a potential upside of 11.68%. Given Dropbox’s stronger consensus rating and higher possible upside, analysts clearly believe Dropbox is more favorable than CyberAgent.

Valuation and Earnings

This table compares CyberAgent and Dropbox”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CyberAgent	$5.86 billion	1.04	$212.18 million	$0.20	30.00
Dropbox	$2.55 billion	2.89	$452.30 million	$1.77	16.06

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

Summary

Dropbox beats CyberAgent on 11 of the 14 factors compared between the two stocks.

About CyberAgent

CyberAgent, Inc. engages in the media, internet advertising, game, and investment development businesses primarily in Japan. The company operates Ameba, a blog service; Tapple for online dating; AWA, a music streaming service; and WinTicket for online betting. It also offers internet advertising agency and ad technology services; and smartphone games. In addition, the company operates a programming school for kids and provides application and reward points exchange platform services; artificial intelligence services; and digital transformation services. CyberAgent, Inc. was incorporated in 1998 and is headquartered in Tokyo, Japan.

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.