Dropbox, Inc. (DBX) vs WEX Inc. (WEX)

Dropbox, Inc. and WEX Inc. are both Software Infrastructure companies. Dropbox, Inc. is the larger, with a market value of $7.1B against $6.3B — 1.1× the size. WEX Inc. trades at the lower P/E: 17.5× against 17.7×. WEX Inc. grew revenue faster over the last twelve months: 7.46% against −0.05%. Dropbox, Inc. has the higher net margin (17.5% vs 12.6%) and the higher return on invested capital (271.8% vs 0.00%). Across the 20 metrics below, Dropbox, Inc. leads on 11 and WEX Inc. on 9.

Valuation

Metric DBX WEX Software Infrastructure median
P/E 17.72 17.53 28.02
P/S 2.86 2.22 3.07
P/B n/m 4.60 3.36
Price to free cash flow 7.60 123.97 17.12
EV/EBITDA 11.06 3.80 14.91
EV/Sales 3.79 1.42 3.03
Earnings yield 5.64% 5.70% 0.13%
Free cash flow yield 13.16% 0.81% 1.15%

Profitability

Metric DBX WEX Software Infrastructure median
Gross margin 79.72% 59.61% 61.23%
Operating margin 26.64% 25.47% 0.00%
Net margin 17.49% 12.56% 0.00%
Free cash flow margin 37.68% 1.79% 1.67%
Return on equity (25.35%) 30.19% 0.59%
Return on assets 15.80% 2.25% 0.00%
Return on invested capital 271.80% 0.00% 0.00%

Growth

Metric DBX WEX Software Infrastructure median
Revenue growth (TTM) (0.05%) 7.46% 13.41%
EPS growth (last fiscal year) 32.86% 12.93% —
Revenue growth, 5-year CAGR 5.66% 11.27% 15.81%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric DBX WEX Software Infrastructure median
Debt to equity (1.58) 2.62 0.06
Current ratio 1.07 1.04 1.55
Net debt to EBITDA 2.26 (2.49) 0.08

Dividend

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

Size

Metric DBX WEX Software Infrastructure median
Market cap 7.10b 6.32b 835.96m

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