Contrasting Pathfinder Acquisition (NASDAQ:PFDR) and Dropbox (NASDAQ:DBX)

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

Insider & Institutional Ownership

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Pathfinder Acquisition and Dropbox, as provided by MarketBeat.com.

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

Dropbox has a consensus target price of $28.67, suggesting a potential downside of 6.81%. Given Dropbox’s stronger consensus rating and higher possible upside, analysts clearly believe Dropbox is more favorable than Pathfinder Acquisition.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pathfinder Acquisition	N/A	N/A	$7.97 million	N/A	N/A
Dropbox	$2.54 billion	3.75	$453.60 million	$1.73	17.78

Dropbox has higher revenue and earnings than Pathfinder Acquisition.

Risk and Volatility

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

Profitability

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

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

Summary

Dropbox beats Pathfinder Acquisition on 10 of the 11 factors compared between the two stocks.

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.

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.