Dropbox (NASDAQ:DBX – Get Free Report) and iQIYI (NASDAQ:IQ – Get Free Report) are both mid-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, valuation and dividends.
Profitability
This table compares Dropbox and iQIYI’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Dropbox | 19.87% | -49.51% | 19.48% |
| iQIYI | -1.45% | -2.44% | -0.71% |
Analyst Ratings
This is a summary of current ratings and target prices for Dropbox and iQIYI, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dropbox | 1 | 3 | 1 | 0 | 2.00 |
| iQIYI | 2 | 3 | 3 | 0 | 2.13 |
Volatility and Risk
Dropbox has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, iQIYI has a beta of 0.03, suggesting that its stock price is 97% less volatile than the S&P 500.
Valuation and Earnings
This table compares Dropbox and iQIYI”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Dropbox | $2.55 billion | 2.74 | $452.30 million | $1.77 | 15.23 |
| iQIYI | $4.00 billion | 0.51 | $104.68 million | ($0.06) | -35.00 |
Dropbox has higher earnings, but lower revenue than iQIYI. iQIYI is trading at a lower price-to-earnings ratio than Dropbox, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
94.8% of Dropbox shares are held by institutional investors. Comparatively, 52.7% of iQIYI shares are held by institutional investors. 28.6% of Dropbox shares are held by insiders. Comparatively, 57.8% of iQIYI shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
Dropbox beats iQIYI on 8 of the 14 factors compared between the two stocks.
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.
About iQIYI
iQIYI, Inc., together with its subsidiaries, provides online entertainment video services in the People's Republic of China. It offers various products and services, including online video, online games, online literature, animations, and other products. The company operates a platform that provides a collection of internet video content, such as professionally produced content licensed from professional content providers and self-produced content. It also offers membership, online advertising, content distribution, and live broadcasting services. In addition, the company operates iQIYI Show, a live broadcasting platform that enables users to follow their favorite hosts and shows in real time through live broadcasting; and iQIYI Lite that offers an easy and quick access to the personalized videos based on their user preferences. Further, it is involved in the talent agency and IP licensing activities, as well as engages in developing a video community app. The company was formerly known as Qiyi.com, Inc. and changed its name to iQIYI, Inc. in November 2017. iQIYI, Inc. was incorporated in 2009 and is headquartered in Beijing, China. iQIYI, Inc. is a subsidiary of Baidu, Inc.
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