Head to Head Contrast: Taboola.com (NASDAQ:TBLA) & DXC Technology (NYSE:DXC)

Taboola.com (NASDAQ:TBLA) and DXC Technology (NYSE:DXC) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.

Insider and Institutional Ownership

42.9% of Taboola.com shares are owned by institutional investors. Comparatively, 96.2% of DXC Technology shares are owned by institutional investors. 22.4% of Taboola.com shares are owned by company insiders. Comparatively, 0.6% of DXC Technology shares are owned by company 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.

Earnings and Valuation

This table compares Taboola.com and DXC Technology”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Taboola.com	$1.91 billion	0.62	$42.28 million	$0.38	12.84
DXC Technology	$12.64 billion	0.13	$18.00 million	$0.06	166.05

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

Analyst Recommendations

This is a summary of recent recommendations for Taboola.com and DXC Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Taboola.com	0	3	5	0	2.63
DXC Technology	4	6	0	0	1.60

Taboola.com currently has a consensus price target of $5.90, indicating a potential upside of 20.90%. DXC Technology has a consensus price target of $12.75, indicating a potential upside of 27.97%. Given DXC Technology’s higher probable upside, analysts clearly believe DXC Technology is more favorable than Taboola.com.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Taboola.com	5.64%	10.72%	6.37%
DXC Technology	0.14%	17.24%	4.35%

Risk & Volatility

Taboola.com has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500. Comparatively, DXC Technology has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.

Summary

Taboola.com beats DXC Technology on 9 of the 14 factors compared between the two stocks.

About Taboola.com

Taboola.com Ltd., together with its subsidiaries, operates an artificial intelligence-based algorithmic engine platform in Israel, the United States, the United Kingdom, Germany, and internationally. It offers Taboola, a platform that partners with websites, devices, and mobile apps to recommend editorial content and advertisements on the open web to users. The company was incorporated in 2006 and is headquartered in New York, New York.

About DXC Technology

DXC Technology Company, together with its subsidiaries, provides information technology services and solutions 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 insights, automate operations, and accelerate their transformation journeys; and software engineering, consulting, and data analytics solutions, which enable businesses to run and manage their mission-critical functions, transform their operations, and develop new ways of doing business. This segment also simplifies, modernize, and accelerate mission-critical applications that support business agility and growth through applications services; provides proprietary modular insurance software and platforms; and operates a wide spectrum of insurance business process services, as well as helps to operate and improve bank cards, payment and lending process and operations, and customer experiences. The GIS segment offers security services, such as IT security, operations and culture for migrating to the cloud, protecting data with a zero-trust strategy, and manage a security operation center; and cloud infrastructure and IT outsourcing services. This segment also delivers a consumer-like experience, centralize IT management, and support services, as well as improves the total cost of ownership; and orchestrates hybrid cloud and multicloud environments. The company 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.