LiveRamp (NYSE:RAMP) versus DXC Technology (NYSE:DXC) Critical Analysis

LiveRamp (NYSE:RAMPGet Free Report) and DXC Technology (NYSE:DXCGet Free Report) are both mid-cap business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.

Insider and Institutional Ownership

93.8% of LiveRamp shares are held by institutional investors. Comparatively, 96.2% of DXC Technology shares are held by institutional investors. 2.9% of LiveRamp shares are held by company insiders. Comparatively, 0.9% 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 is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for LiveRamp and DXC Technology, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LiveRamp 0 0 4 0 3.00
DXC Technology 3 6 0 0 1.67

LiveRamp presently has a consensus price target of $47.75, indicating a potential upside of 48.87%. DXC Technology has a consensus price target of $23.20, indicating a potential upside of 15.19%. Given LiveRamp’s stronger consensus rating and higher probable upside, analysts clearly believe LiveRamp is more favorable than DXC Technology.

Risk & Volatility

LiveRamp has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, DXC Technology has a beta of 1.85, suggesting that its stock price is 85% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
LiveRamp -2.22% 1.57% 1.23%
DXC Technology -3.35% 19.00% 4.46%

Earnings and Valuation

This table compares LiveRamp and DXC Technology’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LiveRamp $596.58 million 3.52 -$118.70 million ($0.22) -145.80
DXC Technology $14.43 billion 0.26 -$568.00 million ($1.91) -10.54

LiveRamp has higher earnings, but lower revenue than DXC Technology. LiveRamp 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

LiveRamp beats DXC Technology on 8 of the 14 factors compared between the two stocks.

About LiveRamp

(Get Free Report)

LiveRamp Holdings, Inc., a technology company, operates a data collaboration platform in the United States, Europe, the Asia-Pacific, and internationally. The company operates LiveRamp Data Collaboration platform enables an organization to unify customer and prospect data to build a single view of the customer in a way that protects consumer privacy. Its platform supports various people-based marketing solutions, including data collaboration, activation, measurement and analytics, identity, and data marketplace. The company sells its solutions to enterprise marketers, agencies, marketing technology providers, publishers, and data providers in various industry verticals, such as financial, insurance and investment services, retail, automotive, telecommunications, high tech, consumer packaged goods, healthcare, travel, entertainment, and non-profit. The company was formerly known as Acxiom Holdings, Inc. and changed its name to LiveRamp Holdings, Inc. in October 2018. LiveRamp Holdings, Inc. was incorporated in 2018 and is headquartered in San Francisco, California.

About DXC Technology

(Get Free Report)

DXC Technology Company, together with its subsidiaries, provides information technology services and solutions primarily 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 rapid insights, automate operations, and accelerate their transformation journeys; and software engineering, consulting, and data analytics solutions that enable businesses to run and manage their mission-critical functions, transform their operations, and develop new ways of doing business. It also simplifies, modernize, and accelerate mission-critical applications that support business agility and growth through applications services. In addition, this segment provides proprietary modular insurance software and platforms; and operates spectrum of insurance business process services, as well as operates bank cards, payment and lending process, and customer experiences. The GIS segment provides security services, such as IT security, operations and culture for the cloud, protecting data with a zero-trust strategy, and manage a security operation center; and cloud infrastructure and IT outsourcing services. It also delivers a consumer-like experience, centralize IT management, and support services, as well as improve the total cost of ownership. In addition, it 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.

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