Financial Survey: DXC Technology (NYSE:DXC) & Rimini Street (NASDAQ:RMNI)

Rimini Street (NASDAQ:RMNI) and DXC Technology (NYSE:DXC) are both small-cap technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations for Rimini Street and DXC Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rimini Street	0	3	3	0	2.50
DXC Technology	2	7	0	0	1.78

Rimini Street presently has a consensus price target of $6.50, indicating a potential upside of 41.30%. DXC Technology has a consensus price target of $12.21, indicating a potential upside of 11.81%. Given Rimini Street’s stronger consensus rating and higher probable upside, analysts plainly believe Rimini Street is more favorable than DXC Technology.

Risk & Volatility

Rimini Street has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500. Comparatively, DXC Technology has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500.

Earnings & Valuation

This table compares Rimini Street and DXC Technology”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rimini Street	$421.54 million	1.02	$37.10 million	$0.08	57.50
DXC Technology	$12.64 billion	0.14	$18.00 million	$0.70	15.61

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rimini Street	1.69%	-53.91%	3.24%
DXC Technology	0.99%	15.60%	3.94%

Insider & Institutional Ownership

73.8% of Rimini Street shares are owned by institutional investors. Comparatively, 96.2% of DXC Technology shares are owned by institutional investors. 42.0% of Rimini Street shares are owned by insiders. Comparatively, 1.1% of DXC Technology shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Rimini Street beats DXC Technology on 9 of the 14 factors compared between the two stocks.

About Rimini Street

Rimini Street, Inc. provides enterprise software products, services, and support. The company engages in the provision of support services for Oracle and SAP enterprise software products. It also provides Rimini ONE, an outsourcing option that offers a set of unified and integrated services to run, manage, support, customize, configure, connect, protect, monitor, and optimize its clients’ application, database, and technology enterprise software; Rimini Support, a mission-critical support for Oracle, SAP, proprietary and open-source database, and technology software; Rimini Manage, a suite of managed services for application and database software; Rimini Protect, a suite of personalized software security services and solutions; and Rimini Connect, a suite of managed interoperability solutions for browsers, operating systems, and email systems. In addition, the company offers Rimini Watch, a suite of observability solutions that include monitoring and system health check solutions; Rimini Consult, a suite of professional services for clients’ enterprise software customization, configuration, implementation, integration, interoperability, migration, staff augmentation, and other project needs; and Rimini Custom, a program that expands support and related services to a broader portfolio of enterprise software. The company serves Fortune 500 companies and Fortune Global 100 companies across various industries. It sells its solutions primarily through direct sales organizations in North America, Latin America, Europe, Africa, the Middle East, Asia, and the Asia-Pacific. The company was incorporated in 2005 and is headquartered in Las Vegas, Nevada.

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.