DXC Technology (NYSE:DXC – Get Free Report) and C3.ai (NYSE:AI – Get Free Report) are both mid-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, valuation, earnings, risk and dividends.
Risk and Volatility
DXC Technology has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, C3.ai has a beta of 1.96, suggesting that its stock price is 96% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and price targets for DXC Technology and C3.ai, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DXC Technology | 1 | 5 | 0 | 0 | 1.83 |
| C3.ai | 5 | 8 | 2 | 1 | 1.94 |
Earnings & Valuation
This table compares DXC Technology and C3.ai”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DXC Technology | $12.87 billion | 0.20 | $389.00 million | $2.06 | 6.96 |
| C3.ai | $389.06 million | 5.82 | -$288.70 million | ($2.24) | -7.52 |
DXC Technology has higher revenue and earnings than C3.ai. C3.ai is trading at a lower price-to-earnings ratio than DXC Technology, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
96.2% of DXC Technology shares are owned by institutional investors. Comparatively, 39.0% of C3.ai shares are owned by institutional investors. 0.6% of DXC Technology shares are owned by insiders. Comparatively, 26.5% of C3.ai 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.
Profitability
This table compares DXC Technology and C3.ai’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DXC Technology | 2.96% | 18.59% | 4.69% |
| C3.ai | -74.21% | -33.51% | -27.48% |
Summary
DXC Technology beats C3.ai on 8 of the 15 factors compared between the two stocks.
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.
About C3.ai
C3.ai, Inc. operates as an enterprise artificial intelligence (AI) software company in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company provides C3 AI platform, an application development and runtime environment that enables customers to design, develop, and deploy enterprise AI applications; C3 AI Ex Machina for analysis-ready data; C3 AI CRM, an industry specific customer relationship management solution; and C3 Generative AI Product Suite that enables to locate, retrieve, and present information. It also offers C3 AI applications, including C3 AI Inventory Optimization, a solution to optimize raw material, in-process, and finished goods inventory levels; C3 AI Supply Network Risk, which identifies emerging inbound and outbound risks across the network; C3 AI Sustainability Suite, which helps to decrease greenhouse gas emission; C3 AI Production Schedule Optimization, a solution for scheduling production; C3 AI Financial Services Suite, which helps to minimize compliance risks; and C3 AI Energy Management solution. In addition, it offers integrated turnkey enterprise AI applications for oil and gas, chemicals, utilities, manufacturing, financial services, defense, intelligence, aerospace, healthcare, and telecommunications market. It has strategic partnerships with Baker Hughes in the areas of oil and gas market; Booz Allen to provide solutions to government, defense, and intelligence sectors; Raytheon; and AWS, Google, and Microsoft. The company was formerly known as C3 IoT, Inc. and changed its name to C3.ai, Inc. in June 2019. C3.ai, Inc. was incorporated in 2009 and is headquartered in Redwood City, California.
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