Dropbox, Inc. (DBX) vs GitLab Inc. (GTLB)

Dropbox, Inc. and GitLab Inc. are both Software Infrastructure companies. GitLab Inc. is the larger, with a market value of $8.1B against $7.1B — 1.1× the size. GitLab Inc. has negative trailing earnings, so its P/E is not meaningful; Dropbox, Inc. trades at 17.7×. GitLab Inc. grew revenue faster over the last twelve months: 23.0% against −0.05%. Dropbox, Inc. has the higher net margin (17.5% vs −4.99%) and the higher return on invested capital (271.8% vs 0.00%). Across the 18 metrics below, Dropbox, Inc. leads on 13 and GitLab Inc. on 5.

Valuation

Metric DBX GTLB Software Infrastructure median
P/E 17.72 n/m 28.02
P/S 2.86 7.49 3.07
P/B n/m 8.14 3.36
Price to free cash flow 7.60 36.99 17.12
EV/EBITDA 11.06 n/m 14.91
EV/Sales 3.79 6.30 3.03
Earnings yield 5.64% (0.68%) 0.13%
Free cash flow yield 13.16% 2.70% 1.15%

Profitability

Metric DBX GTLB Software Infrastructure median
Gross margin 79.72% 85.75% 61.23%
Operating margin 26.64% (8.55%) 0.00%
Net margin 17.49% (4.99%) 0.00%
Free cash flow margin 37.68% 20.25% 1.67%
Return on equity (25.35%) (5.60%) 0.59%
Return on assets 15.80% (3.33%) 0.00%
Return on invested capital 271.80% 0.00% 0.00%

Growth

Metric DBX GTLB Software Infrastructure median
Revenue growth (TTM) (0.05%) 22.99% 13.41%
EPS growth (last fiscal year) 32.86% (1,600.00%) —
Revenue growth, 5-year CAGR 5.66% 44.39% 15.81%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric DBX GTLB Software Infrastructure median
Debt to equity (1.58) 0.00 0.06
Current ratio 1.07 2.41 1.55
Net debt to EBITDA 2.26 101.14 0.08

Dividend

Metric DBX GTLB Software Infrastructure median
Dividend yield 0.05% — 1.53%
Payout ratio 0.00 0.00 0.00

Size

Metric DBX GTLB Software Infrastructure median
Market cap 7.10b 8.07b 835.96m

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