Dropbox Inc (DBX)vsMicrosoft Corporation (MSFT)
DBX
Dropbox Inc
$22.70
-1.82%
TECHNOLOGY · Cap: $5.79B
MSFT
Microsoft Corporation
$371.04
-0.46%
TECHNOLOGY · Cap: $2.85T
Smart Verdict
WallStSmart Research — data-driven comparison
Microsoft Corporation generates 12016% more annual revenue ($305.45B vs $2.52B). MSFT leads profitability with a 39.0% profit margin vs 20.2%. MSFT appears more attractively valued with a PEG of 1.25. MSFT earns a higher WallStSmart Score of 74/100 (B).
DBX
Buy58
out of 100
Grade: C
MSFT
Strong Buy74
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+72.0%
Fair Value
$87.05
Current Price
$22.70
$64.35 discount
Margin of Safety
+50.1%
Fair Value
$747.40
Current Price
$371.04
$376.36 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Keeps 20 of every $100 in revenue as profit
Attractively priced relative to earnings
Strong operational efficiency at 24.9%
Earnings expanding 27.2% YoY
Mega-cap, among the largest globally
Every $100 of equity generates 34 in profit
Keeps 39 of every $100 in revenue as profit
Strong operational efficiency at 47.1%
Earnings expanding 59.8% YoY
16.7% revenue growth
Areas to Watch
Expensive relative to growth rate
Revenue declined 1.2%
Distress zone — elevated risk
No major concerns identified
Comparative Analysis Report
WallStSmart ResearchBull Case : DBX
The strongest argument for DBX centers on Profit Margin, P/E Ratio, Operating Margin. Profitability is solid with margins at 20.2% and operating margin at 24.9%.
Bull Case : MSFT
The strongest argument for MSFT centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 39.0% and operating margin at 47.1%. Revenue growth of 16.7% demonstrates continued momentum.
Bear Case : DBX
The primary concerns for DBX are PEG Ratio, Revenue Growth, Altman Z-Score.
Bear Case : MSFT
No major red flags identified for MSFT, but monitor valuation.
Key Dynamics to Monitor
DBX profiles as a declining stock while MSFT is a growth play — different risk/reward profiles.
MSFT carries more volatility with a beta of 1.11 — expect wider price swings.
MSFT is growing revenue faster at 16.7% — sustainability is the question.
MSFT generates stronger free cash flow (5.9B), providing more financial flexibility.
Bottom Line
MSFT scores higher overall (74/100 vs 58/100), backed by strong 39.0% margins and 16.7% revenue growth. DBX offers better value entry with a 72.0% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Dropbox Inc
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Dropbox, Inc. provides a worldwide collaboration platform. The company is headquartered in San Francisco, California.
Microsoft Corporation
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Microsoft Corporation is an American multinational technology company which produces computer software, consumer electronics, personal computers, and related services. Its best known software products are the Microsoft Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. Its flagship hardware products are the Xbox video game consoles and the Microsoft Surface lineup of touchscreen personal computers. Microsoft ranked No. 21 in the 2020 Fortune 500 rankings of the largest United States corporations by total revenue; it was the world's largest software maker by revenue as of 2016. It is considered one of the Big Five companies in the U.S. information technology industry, along with Google, Apple, Amazon, and Facebook.
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