Critical Survey: Pathfinder Acquisition (NASDAQ:PFDR) and Dropbox (NASDAQ:DBX)

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

Analyst Ratings

This is a breakdown of current recommendations for Dropbox and Pathfinder Acquisition, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dropbox	2	3	2	0	2.00
Pathfinder Acquisition	0	0	0	0	0.00

Dropbox presently has a consensus target price of $28.67, indicating a potential downside of 5.23%. Given Dropbox’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Dropbox is more favorable than Pathfinder Acquisition.

Insider & Institutional Ownership

94.8% of Dropbox shares are held by institutional investors. Comparatively, 77.8% of Pathfinder Acquisition shares are held by institutional investors. 26.4% of Dropbox shares are held by insiders. Comparatively, 20.0% of Pathfinder Acquisition shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dropbox	$2.54 billion	3.69	$453.60 million	$1.73	17.49
Pathfinder Acquisition	N/A	N/A	$7.97 million	N/A	N/A

Dropbox has higher revenue and earnings than Pathfinder Acquisition.

Volatility and Risk

Dropbox has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500. Comparatively, Pathfinder Acquisition has a beta of -0.02, indicating that its share price is 102% less volatile than the S&P 500.

Profitability

This table compares Dropbox and Pathfinder Acquisition’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dropbox	22.71%	-135.85%	16.68%
Pathfinder Acquisition	N/A	-102.69%	4.33%

Summary

Dropbox beats Pathfinder Acquisition on 10 of the 11 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 Pathfinder Acquisition

Pathfinder Acquisition Corporation does not have significant operations. It intends to effect a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses in the technology or technology-enabled sectors. The company was incorporated in 2020 and is based in Palo Alto, California.