Head-To-Head Analysis: DXC Technology (NYSE:DXC) vs. LiveRamp (NYSE:RAMP)

DXC Technology (NYSE:DXC) and LiveRamp (NYSE:RAMP) are both mid-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and price targets for DXC Technology and LiveRamp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DXC Technology	3	6	0	0	1.67
LiveRamp	0	0	4	0	3.00

DXC Technology currently has a consensus target price of $23.20, suggesting a potential upside of 16.06%. LiveRamp has a consensus target price of $47.75, suggesting a potential upside of 48.57%. Given LiveRamp’s stronger consensus rating and higher possible upside, analysts clearly believe LiveRamp is more favorable than DXC Technology.

Institutional & Insider Ownership

96.2% of DXC Technology shares are owned by institutional investors. Comparatively, 93.8% of LiveRamp shares are owned by institutional investors. 0.9% of DXC Technology shares are owned by company insiders. Comparatively, 2.9% of LiveRamp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

DXC Technology has a beta of 1.85, indicating that its share price is 85% more volatile than the S&P 500. Comparatively, LiveRamp has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.

Earnings and Valuation

This table compares DXC Technology and LiveRamp’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DXC Technology	$14.43 billion	0.25	-$568.00 million	($1.91)	-10.47
LiveRamp	$596.58 million	3.53	-$118.70 million	($0.22)	-146.09

LiveRamp has lower revenue, but higher earnings than DXC Technology. LiveRamp is trading at a lower price-to-earnings ratio than DXC Technology, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares DXC Technology and LiveRamp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DXC Technology	-3.35%	19.00%	4.46%
LiveRamp	-2.22%	1.57%	1.23%

Summary

LiveRamp beats DXC Technology on 8 of the 13 factors compared between the two stocks.

About DXC Technology

DXC Technology Company, together with its subsidiaries, provides information technology services and solutions primarily in the United States, the United Kingdom, rest of Europe, Australia, and internationally. It operates in two segments, Global Business Services (GBS) and Global Infrastructure Services (GIS). The GBS segment offers a portfolio of analytics services and extensive partner ecosystem that help its customers to gain rapid insights, automate operations, and accelerate their transformation journeys; and software engineering, consulting, and data analytics solutions that enable businesses to run and manage their mission-critical functions, transform their operations, and develop new ways of doing business. It also simplifies, modernize, and accelerate mission-critical applications that support business agility and growth through applications services. In addition, this segment provides proprietary modular insurance software and platforms; and operates spectrum of insurance business process services, as well as operates bank cards, payment and lending process, and customer experiences. The GIS segment provides security services, such as IT security, operations and culture for the cloud, protecting data with a zero-trust strategy, and manage a security operation center; and cloud infrastructure and IT outsourcing services. It also delivers a consumer-like experience, centralize IT management, and support services, as well as improve the total cost of ownership. In addition, it markets and sells its products through direct sales force to commercial businesses and public sector enterprises. DXC Technology Company was founded in 1959 and is headquartered in Ashburn, Virginia.

About LiveRamp

LiveRamp Holdings, Inc., a technology company, operates a data collaboration platform in the United States, Europe, the Asia-Pacific, and internationally. The company operates LiveRamp Data Collaboration platform enables an organization to unify customer and prospect data to build a single view of the customer in a way that protects consumer privacy. Its platform supports various people-based marketing solutions, including data collaboration, activation, measurement and analytics, identity, and data marketplace. The company sells its solutions to enterprise marketers, agencies, marketing technology providers, publishers, and data providers in various industry verticals, such as financial, insurance and investment services, retail, automotive, telecommunications, high tech, consumer packaged goods, healthcare, travel, entertainment, and non-profit. The company was formerly known as Acxiom Holdings, Inc. and changed its name to LiveRamp Holdings, Inc. in October 2018. LiveRamp Holdings, Inc. was incorporated in 2018 and is headquartered in San Francisco, California.