CyberArk Software (NASDAQ:CYBR) versus Dropbox (NASDAQ:DBX) Head to Head Comparison

CyberArk Software (NASDAQ:CYBR) and Dropbox (NASDAQ:DBX) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.

Volatility and Risk

CyberArk Software has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, Dropbox has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500.

Profitability

This table compares CyberArk Software and Dropbox’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CyberArk Software	-9.34%	0.45%	0.24%
Dropbox	17.75%	-132.63%	19.58%

Valuation and Earnings

This table compares CyberArk Software and Dropbox”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CyberArk Software	$1.00 billion	16.90	-$93.46 million	($1.95)	-175.50
Dropbox	$2.55 billion	3.21	$453.60 million	$1.41	19.21

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

Analyst Recommendations

This is a summary of recent recommendations for CyberArk Software and Dropbox, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CyberArk Software	0	1	26	1	3.00
Dropbox	0	2	1	0	2.33

CyberArk Software presently has a consensus price target of $418.04, indicating a potential upside of 22.15%. Dropbox has a consensus price target of $27.67, indicating a potential upside of 2.17%. Given CyberArk Software’s stronger consensus rating and higher probable upside, equities analysts plainly believe CyberArk Software is more favorable than Dropbox.

Insider and Institutional Ownership

91.8% of CyberArk Software shares are held by institutional investors. Comparatively, 94.8% of Dropbox shares are held by institutional investors. 1.4% of CyberArk Software shares are held by insiders. Comparatively, 28.6% of Dropbox shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Dropbox beats CyberArk Software on 8 of the 15 factors compared between the two stocks.

About CyberArk Software

CyberArk Software Ltd., together with its subsidiaries, develops, markets, and sells software-based identity security solutions and services in the United States, Europe, the Middle East, Africa, and internationally. Its solutions include Privileged Access Manager, which offers risk-based credential security and session; Vendor Privileged Access Manager combines Privileged Access Manager and Remote Access to provide secure access to third-party vendors; Dynamic Privileged Access, a SaaS solution that provides just-in-time access to Linux Virtual Machines; Endpoint Privilege Manager, a SaaS solution that secures privileges on the endpoint; and Secure Desktop, a solution that protects access to endpoints. The company also provides workforce identity, which offers adaptive multi-factor authentication (MFA), single sign-on, secure web sessions, workforce password management, application gateway, identity lifecycle management, and directory services; and customer identity services that provides authentication and authorization services, MFA, directory, and user management. In addition, it offers Secrets Manager Credential Providers to provide and manage the credentials used by third-party solutions; Conjur Enterprise and Conjur Cloud, which offers a secrets management solution for specific requirements; Secrets Hub, a centralized visibility and management platform; Cloud Security solutions; Identity Management solutions, including lifecycle management, identity flows, identity compliance, and directory services; and Secure Browser. The company serves financial services, manufacturing, insurance, healthcare, energy and utilities, transportation, retail, technology, and telecommunications industries; and government agencies. The company was incorporated in 1996 and is headquartered in Petah Tikva, Israel.

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.