Verisk Analytics (NASDAQ:VRSK) and DXC Technology (NYSE:DXC) are both business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
88.2% of Verisk Analytics shares are owned by institutional investors. Comparatively, 82.3% of DXC Technology shares are owned by institutional investors. 2.6% of Verisk Analytics shares are owned by company insiders. Comparatively, 0.8% of DXC Technology shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Verisk Analytics and DXC Technology's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Verisk Analytics | 19.12% | 36.42% | 11.46% |
DXC Technology | -20.44% | 14.08% | 3.09% |
Analyst Ratings
This is a summary of recent recommendations for Verisk Analytics and DXC Technology, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Verisk Analytics | 0 | 5 | 8 | 0 | 2.62 |
DXC Technology | 0 | 7 | 4 | 0 | 2.36 |
Verisk Analytics presently has a consensus price target of $192.4167, suggesting a potential upside of 11.82%. DXC Technology has a consensus price target of $27.2727, suggesting a potential downside of 4.24%. Given Verisk Analytics' stronger consensus rating and higher probable upside, equities research analysts clearly believe Verisk Analytics is more favorable than DXC Technology.
Volatility and Risk
Verisk Analytics has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500. Comparatively, DXC Technology has a beta of 2.46, meaning that its share price is 146% more volatile than the S&P 500.
Valuation and Earnings
This table compares Verisk Analytics and DXC Technology's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Verisk Analytics | $2.61 billion | 10.75 | $449.90 million | $4.38 | 39.29 |
DXC Technology | $19.58 billion | 0.37 | $-5,369,000,000.00 | $5.58 | 5.12 |
Verisk Analytics has higher earnings, but lower revenue than DXC Technology. DXC Technology is trading at a lower price-to-earnings ratio than Verisk Analytics, indicating that it is currently the more affordable of the two stocks.
Summary
Verisk Analytics beats DXC Technology on 11 of the 14 factors compared between the two stocks.