DXC Technology (NYSE:DXC) & Fair Isaac (NYSE:FICO) Critical Contrast

DXC Technology (NYSE:DXC) and Fair Isaac (NYSE:FICO) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, risk and dividends.

Volatility & Risk

DXC Technology has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500. Comparatively, Fair Isaac has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500.

Institutional & Insider Ownership

96.2% of DXC Technology shares are held by institutional investors. Comparatively, 85.8% of Fair Isaac shares are held by institutional investors. 0.6% of DXC Technology shares are held by insiders. Comparatively, 3.5% of Fair Isaac shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares DXC Technology and Fair Isaac”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	0.19	$389.00 million	$2.06	6.70
Fair Isaac	$1.72 billion	25.87	$512.81 million	$25.57	72.39

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

Profitability

This table compares DXC Technology and Fair Isaac’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%
Fair Isaac	32.80%	-48.88%	31.72%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for DXC Technology and Fair Isaac, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DXC Technology	2	5	0	0	1.71
Fair Isaac	0	3	11	2	2.94

DXC Technology currently has a consensus target price of $15.60, indicating a potential upside of 13.00%. Fair Isaac has a consensus target price of $2,130.29, indicating a potential upside of 15.09%. Given Fair Isaac’s stronger consensus rating and higher probable upside, analysts plainly believe Fair Isaac is more favorable than DXC Technology.

Summary

Fair Isaac beats DXC Technology on 12 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 Fair Isaac

Fair Isaac Corporation develops analytic, software, and digital decisioning technologies and services that enable businesses to automate, enhance, and connect decisions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates in two segments, Scores and Software. The Software segment provides pre-configured analytic and decision management solution designed for various business needs or processes, such as account origination, customer management, customer engagement, fraud detection, financial crimes compliance, and marketing, as well as associated professional services. This segment also offers FICO Platform, a modular software offering designed to support advanced analytic and decision use cases, as well as stand-alone analytic and decisioning software that can be configured by customers to address a wide range of business use cases. The Scores segment provides business-to-business scoring solutions and services for consumers that give clients access to predictive credit and other scores that can be integrated into their transaction streams and decision-making processes, as well as business-to-consumer scoring solutions comprising myFICO.com subscription offerings. It offers FICO Customer Analytics, FICO Responsible AI, FICO Advisors, FICO Business Outcome Simulator, FICO Forecaster, FICO TRIAD Customer Manager, FICO Blaze Advisor, FICO Xpress Optimization, FICO Falcon Fraud Manager, FICO Analytics Workbench, FICO Data Orchestrator, FICO DMP Streaming, FICO Decision Optimizer, and FICO Strategy Director, as well as software implementation and configuration services. The company markets its products and services primarily through its direct sales organization and indirect channels, as well as online. The company was formerly known as Fair Isaac & Company, Inc. and changed its name to Fair Isaac Corporation in July 1992. Fair Isaac Corporation was founded in 1956 and is headquartered in Bozeman, Montana.