DXC Technology (NYSE:DXC) and Carbonite (NASDAQ:CARB) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.
This is a breakdown of current ratings and target prices for DXC Technology and Carbonite, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
DXC Technology currently has a consensus price target of $82.33, suggesting a potential upside of 60.06%. Carbonite has a consensus price target of $38.50, suggesting a potential upside of 65.95%. Given Carbonite’s higher possible upside, analysts clearly believe Carbonite is more favorable than DXC Technology.
Earnings & Valuation
This table compares DXC Technology and Carbonite’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|DXC Technology||$20.75 billion||0.66||$1.26 billion||$8.34||6.17|
|Carbonite||$296.41 million||2.70||$7.56 million||$1.25||18.56|
DXC Technology has higher revenue and earnings than Carbonite. DXC Technology is trading at a lower price-to-earnings ratio than Carbonite, indicating that it is currently the more affordable of the two stocks.
This table compares DXC Technology and Carbonite’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
DXC Technology has a beta of 1.7, meaning that its stock price is 70% more volatile than the S&P 500. Comparatively, Carbonite has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500.
DXC Technology pays an annual dividend of $0.84 per share and has a dividend yield of 1.6%. Carbonite does not pay a dividend. DXC Technology pays out 10.1% of its earnings in the form of a dividend.
Institutional and Insider Ownership
85.4% of DXC Technology shares are owned by institutional investors. 0.7% of DXC Technology shares are owned by company insiders. Comparatively, 8.0% of Carbonite shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
DXC Technology beats Carbonite on 10 of the 16 factors compared between the two stocks.
About DXC Technology
DXC Technology Company, together with its subsidiaries, provides information technology services and solutions primarily in North America, Europe, Asia, and Australia. It operates through three segments: Global Business Services (GBS), Global Infrastructure Services (GIS), and United States Public Sector (USPS). The GBS segment offers technology solutions comprising enterprise, cloud application, and consulting services; application services; analytics services; business process services; and industry software and solutions. The GIS segment offers cloud and platform services; workplace, mobility, and Internet of Things services; and security solutions. The USPS segment delivers IT services and business solutions to all levels of government in the United States. This segment offers cloud, platform, and IT outsourcing services; enterprise and cloud application services; enterprise security solutions; mobile enterprise, virtual desktop and application, and workplace device services; and analytics services, such as analytics platforms, information governance, artificial intelligence, and advisory services. The company was formerly known as Computer Sciences Corporation and changed its name to DXC Technology Company in April 2017 as a result of its merger with the Enterprise Services business of Hewlett Packard Enterprise Company. DXC Technology Company was founded in 1959 and is headquartered in Tysons, Virginia.
Carbonite, Inc., together with its subsidiaries, provides backup, disaster recovery, high availability, and workload migration technology solutions in the United States. Its solutions include Carbonite Safe, a cloud backup solution for individuals and businesses that protects customer data from accidental deletions, crashes, ransomware, viruses, and other common threats; and Carbonite Endpoint that protects the data, which resides on an organization's computers, laptops, tablets, and smartphones. The company's solutions also comprise Carbonite Server, an all-in-one server protection solution for physical, virtual, and legacy systems that deploys in an organization's onsite environment and store copies on a local target and direct to the secure Carbonite cloud; Carbonite Availability that keeps critical business systems available on Windows and Linux servers; and Carbonite Recover, a solution that securely replicates critical systems from an organization's primary environment to the cloud. In addition, it offers Carbonite Migrate, which migrates physical, virtual, and cloud workloads over any distance with minimal risk and near-zero downtime; and Carbonite Email Archiving that provides MailStore offerings designed to meet the specific email archiving needs of customers in terms of performance, stability, functionality, and simplicity. The company provides its solutions through distributors, value-added resellers, managed service providers, and global systems integrators. Carbonite, Inc. was founded in 2005 and is headquartered in Boston, Massachusetts.
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