Comparing Datasea (NASDAQ:DTSS) & DXC Technology (NYSE:DXC)

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

Analyst Ratings

This is a summary of current ratings and price targets for DXC Technology and Datasea, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DXC Technology	2	6	0	0	1.75
Datasea	1	0	0	0	1.00

DXC Technology presently has a consensus target price of $15.00, indicating a potential downside of 0.31%. Given DXC Technology’s stronger consensus rating and higher possible upside, analysts plainly believe DXC Technology is more favorable than Datasea.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DXC Technology	$12.87 billion	0.20	$389.00 million	$2.03	7.41
Datasea	$71.62 million	0.10	-$5.09 million	($0.42)	-1.98

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

Institutional and Insider Ownership

96.2% of DXC Technology shares are owned by institutional investors. Comparatively, 82.1% of Datasea shares are owned by institutional investors. 0.6% of DXC Technology shares are owned by insiders. Comparatively, 50.7% of Datasea shares are owned by 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.

Risk and Volatility

DXC Technology has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, Datasea has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DXC Technology	2.93%	17.83%	4.52%
Datasea	-5.17%	-110.68%	-50.20%

Summary

DXC Technology beats Datasea on 12 of the 13 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 Datasea

Datasea Inc., through its subsidiaries, provides technology and information systems in the People's Republic of China. The company provides smart city solutions and 5G messaging applications. It also offers its smart security solutions primarily to schools, tourist or scenic attractions, and public communities. In addition, the company provides intelligent acoustics products, which include ultrasonic air sterilizer, air purification and deodorization, and other products. The company was formerly known as Rose Rock, Inc. and changed its name to Datasea Inc. in October 2015. Datasea Inc. was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.