Dropdowns with just two values are an abomination (unto Nielsen). It's pretty hard to think of a use case where they would be justified. It is extremely frustrating to open a dropdown just to see that there's one more value in it. The reason you're usually seeing dropdowns in these contexts is that usually you have more than two options.
EDIT OK, it just occurred to me that maybe you didn't mean that there's only two options. In that case a good rule of thumb is to have a dropdown for 4 or more values. With three you can do it in either way, if you can arrange the layout for the radio buttons (it may be challenging).