Comparing Dropbox (NASDAQ:DBX) & Trimble (NASDAQ:TRMB)
by Sarita Garza · The Markets DailyTrimble (NASDAQ:TRMB – Get Free Report) and Dropbox (NASDAQ:DBX – Get Free Report) are both technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, earnings, valuation, profitability and analyst recommendations.
Earnings & Valuation
This table compares Trimble and Dropbox”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Trimble | $3.59 billion | 3.73 | $424.00 million | ($0.49) | -116.98 |
| Dropbox | $2.52 billion | 3.38 | $508.40 million | $1.80 | 20.97 |
Dropbox has lower revenue, but higher earnings than Trimble. Trimble 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 Trimble and Dropbox’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Trimble | -2.77% | 12.29% | 7.67% |
| Dropbox | 17.49% | -24.26% | 15.88% |
Risk & Volatility
Trimble has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, Dropbox has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500.
Insider & Institutional Ownership
93.2% of Trimble shares are held by institutional investors. Comparatively, 94.8% of Dropbox shares are held by institutional investors. 0.6% of Trimble shares are held by insiders. Comparatively, 35.5% of Dropbox shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Trimble and Dropbox, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Trimble | 1 | 2 | 9 | 0 | 2.67 |
| Dropbox | 3 | 4 | 1 | 0 | 1.75 |
Trimble currently has a consensus target price of $81.78, indicating a potential upside of 42.67%. Dropbox has a consensus target price of $30.75, indicating a potential downside of 18.52%. Given Trimble’s stronger consensus rating and higher probable upside, equities analysts plainly believe Trimble is more favorable than Dropbox.
About Trimble
Trimble Inc. provides technology solutions that enable professionals and field mobile workers to enhance or transform their work processes worldwide. The company's Buildings and Infrastructure segment offers field and office software for project design and visualization; systems to guide and control construction equipment; software for 3D design and data sharing; systems to monitor, track, and manage assets, equipment, and workers; software to share and communicate data; program management solutions for construction owners; 3D conceptual design and modeling software; building information modeling software; enterprise resource planning, project management, and project collaboration solutions; integrated site layout and measurement systems; cost estimating, scheduling, and project controls solutions; and applications for sub-contractors and trades. Its Geospatial segment provides surveying and geospatial products, and geographic information systems. The company's Resources and Utilities segment offers precision agriculture products and services, such as guidance and positioning systems, including autonomous steering systems, automated and variable-rate application and technology systems, and information management solutions; manual and automated navigation guidance for tractors and other farm equipment; solutions to automate application of pesticide and seeding; water solutions; and agricultural software. Its Transportation segment offers solutions for long haul trucking and freight shipper markets; mobility solutions comprising route management, safety and compliance, end-to-end vehicle management, video intelligence, and supply chain communications; and fleet and transportation management systems, analytics, routing, mapping, reporting, and predictive modeling solutions. The company was formerly known as Trimble Navigation Limited and changed its name to Trimble Inc. in October 2016. Trimble Inc. was founded in 1978 and is headquartered in Westminster, Colorado.
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.