Comparing DXC Technology (NYSE:DXC) and GoodRx (NASDAQ:GDRX)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DXC Technology	0.18%	20.42%	4.69%
GoodRx	-2.05%	5.35%	2.51%

Earnings and Valuation

This table compares DXC Technology and GoodRx”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DXC Technology	$13.67 billion	0.29	$91.00 million	$0.08	277.41
GoodRx	$750.27 million	2.49	-$8.87 million	($0.03)	-163.67

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

Volatility & Risk

DXC Technology has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500. Comparatively, GoodRx has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for DXC Technology and GoodRx, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DXC Technology	2	7	0	0	1.78
GoodRx	1	5	9	1	2.63

DXC Technology currently has a consensus target price of $20.89, indicating a potential downside of 5.86%. GoodRx has a consensus target price of $8.60, indicating a potential upside of 75.15%. Given GoodRx’s stronger consensus rating and higher possible upside, analysts clearly believe GoodRx is more favorable than DXC Technology.

Insider & Institutional Ownership

96.2% of DXC Technology shares are held by institutional investors. Comparatively, 63.8% of GoodRx shares are held by institutional investors. 0.5% of DXC Technology shares are held by company insiders. Comparatively, 4.2% of GoodRx shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

DXC Technology beats GoodRx on 9 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 GoodRx

GoodRx Holdings, Inc., together with its subsidiaries, offers information and tools that enable consumers to compare prices and save on their prescription drug purchases in the United States. The company operates a price comparison platform that provides consumers with curated, geographically relevant prescription pricing, and access to negotiated prices. It also offers other healthcare products and services, including subscriptions, and pharma manufacturer solutions, as well as telehealth services through the GoodRx Care platform. It serves pharmacy benefit managers who manage formularies and prescription transactions, including establishing pricing between consumers and pharmacies. The company was founded in 2011 and is headquartered in Santa Monica, California.