DXC Technology (NYSE:DXC) versus TELUS International (Cda) (NYSE:TIXT) Head to Head Comparison

TELUS International (Cda) (NYSE:TIXT) and DXC Technology (NYSE:DXC) are both business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.

Volatility and Risk

TELUS International (Cda) has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500. Comparatively, DXC Technology has a beta of 1.65, suggesting that its share price is 65% more volatile than the S&P 500.

Valuation & Earnings

This table compares TELUS International (Cda) and DXC Technology”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TELUS International (Cda)	$2.66 billion	0.43	$54.00 million	($0.05)	-83.20
DXC Technology	$13.26 billion	0.27	$91.00 million	$0.08	248.38

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

Profitability

This table compares TELUS International (Cda) and DXC Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TELUS International (Cda)	1.17%	9.67%	4.17%
DXC Technology	0.18%	20.42%	4.69%

Insider & Institutional Ownership

59.5% of TELUS International (Cda) shares are held by institutional investors. Comparatively, 96.2% of DXC Technology shares are held by institutional investors. 4.8% of TELUS International (Cda) shares are held by insiders. Comparatively, 0.5% of DXC Technology shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for TELUS International (Cda) and DXC Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TELUS International (Cda)	2	13	1	0	1.94
DXC Technology	2	7	0	0	1.78

TELUS International (Cda) presently has a consensus target price of $7.37, indicating a potential upside of 77.05%. DXC Technology has a consensus target price of $20.89, indicating a potential upside of 5.13%. Given TELUS International (Cda)’s stronger consensus rating and higher possible upside, analysts clearly believe TELUS International (Cda) is more favorable than DXC Technology.

Summary

DXC Technology beats TELUS International (Cda) on 8 of the 14 factors compared between the two stocks.

About TELUS International (Cda)

TELUS International (Cda) Inc. design, builds, and delivers digital solutions for customer experience (CX) in the Asia-Pacific, the Central America, Europe, Africa, North America, and internationally. The company provides digital experience solutions, such as AI and bots, omnichannel CX, enterprise mobility solutions, cloud contact center, big data analytics, platform transformation, and UX/UI design; and customer experience solutions, including work anywhere/work from home, contact center outsourcing, technical support, sales growth and customer retention, healthcare/patient experience, and debt collection. It also offers IT lifecycle services comprising cloud platform solutions, managed IT services, application development and management, quality assurance and testing, system operations, IT service desk, internet of things, engineering solutions, and enterprise platform services; advisory services consists of digital strategy, CX process consulting, data and customer analytics, workforce management, learning excellence solutions, and business and process transformation; back office and automation solutions, such as robotic process automation, talent acquisition, finance and accounting, and supply chain management; and trust, safety, and security services, including content moderation and social media community management, and fraud prevention and detection. In addition, the company provides AI data solutions comprising data collection and creation, data annotation, data validation and relevance, and linguistic annotation for video, audio, text, image, and geographical data, as well as 3D sensor fusion. It serves technology and gaming, communications and media, ecommerce, financial services and financial technology, healthcare, travel and hospitality, and automotive industries. The company was founded in 2005 and is headquartered in Vancouver, Canada. TELUS International (Cda) Inc. operates as a subsidiary of TELUS Communications Inc.

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.