DXC Technology (NYSE:DXC) vs. Serve Robotics (NASDAQ:SERV) Financial Review

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

Earnings and Valuation

This table compares Serve Robotics 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
Serve Robotics	$1.81 million	386.80	-$39.19 million	($1.49)	-6.31
DXC Technology	$12.87 billion	0.18	$389.00 million	$2.33	5.82

DXC Technology has higher revenue and earnings than Serve Robotics. Serve Robotics 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 Serve Robotics and DXC Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Serve Robotics	-4,121.58%	-38.52%	-36.89%
DXC Technology	3.34%	17.56%	4.49%

Insider and Institutional Ownership

96.2% of DXC Technology shares are owned by institutional investors. 5.5% of Serve Robotics shares are owned by insiders. Comparatively, 0.6% of DXC Technology shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

Serve Robotics has a beta of 0.33, indicating that its stock price is 67% less volatile than the S&P 500. Comparatively, DXC Technology has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Serve Robotics and DXC Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Serve Robotics	1	0	5	2	3.00
DXC Technology	3	6	0	1	1.90

Serve Robotics currently has a consensus price target of $18.80, suggesting a potential upside of 100.00%. DXC Technology has a consensus price target of $14.71, suggesting a potential upside of 8.52%. Given Serve Robotics’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Serve Robotics is more favorable than DXC Technology.

Summary

DXC Technology beats Serve Robotics on 9 of the 15 factors compared between the two stocks.

About Serve Robotics

Serve Robotics Inc. designs, develops, and operates low-emission robots that serve people in public spaces with food delivery in the United States. It builds self-driving delivery robots. The company was formerly known as Patricia Acquisition Corp. and changed its name to Serve Robotics Inc. in July 2023. Serve Robotics Inc. was founded in 2017 and is based in Redwood City, California.

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.