Head to Head Survey: Accenture (NYSE:ACN) and DXC Technology (NYSE:DXC)

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Accenture and DXC Technology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Accenture	0	11	16	0	2.59
DXC Technology	4	6	0	0	1.60

Accenture currently has a consensus price target of $266.58, suggesting a potential upside of 49.65%. DXC Technology has a consensus price target of $12.75, suggesting a potential upside of 39.39%. Given Accenture’s stronger consensus rating and higher probable upside, analysts plainly believe Accenture is more favorable than DXC Technology.

Institutional & Insider Ownership

75.1% of Accenture shares are held by institutional investors. Comparatively, 96.2% of DXC Technology shares are held by institutional investors. 0.0% of Accenture shares are held by company insiders. Comparatively, 0.6% of DXC Technology shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Accenture has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, DXC Technology has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Accenture	10.61%	26.33%	12.94%
DXC Technology	0.14%	17.24%	4.35%

Valuation & Earnings

This table compares Accenture 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
Accenture	$69.67 billion	1.70	$7.68 billion	$12.21	14.59
DXC Technology	$12.64 billion	0.12	$18.00 million	$0.06	152.45

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

Summary

Accenture beats DXC Technology on 11 of the 14 factors compared between the two stocks.

About Accenture

Accenture plc, a professional services company, provides strategy and consulting, industry X, song, and technology and operation services worldwide. The company offers application services, including agile transformation, DevOps, application modernization, enterprise architecture, software and quality engineering, data management; intelligent automation comprising robotic process automation, natural language processing, and virtual agents; and application management services, as well as software engineering services; strategy and consulting services; data and analytics strategy, data discovery and augmentation, data management and beyond, data democratization, and industrialized solutions comprising turnkey analytics and artificial intelligence (AI) solutions; metaverse; and sustainability services. It also provides change management, HR transformation and delivery, organization strategy and design, talent strategy and development, and leadership and culture services; digital commerce; infrastructure services, including cloud infrastructure managed, cloud and data center, network, digital workplace, database platforms, service management, and cloud and infrastructure security services; data-enabled operating models; technology consulting and AI services; and technology consulting services. In addition, the company offers engineering and R&D digitization, smart connected products, product as-a-service enablement, capital projects, intelligent asset management, digital industrial workforce, and autonomous robotic systems; business process outsourcing; and services related to technology innovation. Further, it provides cloud, ecosystem, marketing, security, supply chain management, zero-based transformation, customer experience, finance consulting, mergers and acquisitions, and sustainability services. The company has a collaboration with Salesforce, Inc. to develop Salesforce Life Sciences Cloud. The company was founded in 1951 and is based in Dublin, Ireland.

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.