Wix.com (NASDAQ:WIX – Get Free Report) and DXC Technology (NYSE:DXC – Get Free Report) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.
Institutional & Insider Ownership
81.5% of Wix.com shares are held by institutional investors. Comparatively, 96.2% of DXC Technology shares are held by institutional investors. 6.2% of Wix.com shares are held by insiders. Comparatively, 1.1% of DXC Technology shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Risk & Volatility
Wix.com has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, DXC Technology has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Wix.com | 2 | 10 | 11 | 0 | 2.39 |
| DXC Technology | 2 | 7 | 0 | 0 | 1.78 |
Wix.com presently has a consensus target price of $90.57, suggesting a potential upside of 22.01%. DXC Technology has a consensus target price of $12.21, suggesting a potential upside of 11.81%. Given Wix.com’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Wix.com is more favorable than DXC Technology.
Profitability
This table compares Wix.com and DXC Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Wix.com | -8.19% | -1.61% | 0.40% |
| DXC Technology | 0.99% | 15.60% | 3.94% |
Valuation and Earnings
This table compares Wix.com and DXC Technology”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Wix.com | $1.99 billion | 2.17 | $50.65 million | ($3.54) | -20.97 |
| DXC Technology | $12.64 billion | 0.14 | $18.00 million | $0.70 | 15.61 |
Wix.com has higher earnings, but lower revenue than DXC Technology. Wix.com is trading at a lower price-to-earnings ratio than DXC Technology, indicating that it is currently the more affordable of the two stocks.
About Wix.com
Wix.com Ltd., together with its subsidiaries, operates as a cloud-based web development platform for registered users and creators worldwide. The company offers Wix Editor, a drag-and-drop visual development and website editing environment platform; and Wix ADI that enables users to have the freedom of customization that the classic editor offers. It also provides Wix Logo Maker that generates a logo, including through the use of artificial intelligence; Wix Answers to support users; and Payments by Wix, a payment platform, which helps its users receive payments from their customers through their Wix Website. In addition, the company offers various vertical-specific applications that business owners use to operate various aspects of their business online. Further, it provides a range of complementary services, including Wix App Market, a marketplace that offers its registered users various free and paid web applications for building, growing, and managing their businesses; Wix marketplace that brings users seeking help in creating and managing a website together with Web experts; and Wix owner App, a native mobile application, which enables users to manage their Websites and Wix operating systems. The company was formerly known as Wixpress Ltd. The company was incorporated in 2006 and is headquartered in Tel Aviv, Israel.
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.
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