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

Insider & Institutional Ownership

78.4% of Veeva Systems shares are owned by institutional investors. Comparatively, 44.8% of Dropbox shares are owned by institutional investors. 14.4% of Veeva Systems shares are owned by company insiders. Comparatively, 31.2% of Dropbox shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Veeva Systems 27.27% 16.96% 13.29%
Dropbox -3.17% -3.58% -1.11%

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Veeva Systems $1.10 billion 19.50 $301.12 million $1.62 89.46
Dropbox $1.66 billion 4.74 -$52.70 million N/A N/A

Veeva Systems has higher earnings, but lower revenue than Dropbox.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Veeva Systems and Dropbox, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Veeva Systems 0 7 13 0 2.65
Dropbox 1 1 9 0 2.73

Veeva Systems presently has a consensus target price of $176.85, indicating a potential upside of 22.02%. Dropbox has a consensus target price of $27.80, indicating a potential upside of 47.87%. Given Dropbox’s stronger consensus rating and higher possible upside, analysts plainly believe Dropbox is more favorable than Veeva Systems.

Risk & Volatility

Veeva Systems has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500. Comparatively, Dropbox has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.

Summary

Veeva Systems beats Dropbox on 9 of the 13 factors compared between the two stocks.

About Veeva Systems

Veeva Systems Inc. provides cloud-based software for the life sciences industry in North America, Europe, the Asia Pacific, and internationally. The company offers Veeva Commercial Cloud, a suite of multichannel customer relationship management applications, data solutions, and master data management solutions; and Veeva Vault, a cloud-based enterprise content and data management applications for managing commercial functions, including medical, sales, and marketing, as well as research and development functions, such as clinical, regulatory, quality, and safety. It also provides professional and support services in the areas of implementation and deployment planning and project management; requirements analysis, solution design, and configuration; systems environment management and deployment services; services focused on advancing or transforming business and operating processes related to Veeva solutions; technical consulting services related to data migration and systems integrations; training on its solutions; and ongoing managed services that include outsourced systems administration. The company was formerly known as Verticals onDemand, Inc. and changed its name to Veeva Systems Inc. in April 2009. Veeva Systems Inc. was founded in 2007 and is headquartered in Pleasanton, California.

About Dropbox

Dropbox, Inc. provides a collaboration platform worldwide. Its platform allows individuals, 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. The company has approximately 500 million registered users across 180 countries. The company was formerly known as Evenflow, Inc. and changed its name to Dropbox, Inc. in October 2009. Dropbox, Inc. was founded in 2007 and is headquartered in San Francisco, California.

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