Analyzing DXC Technology (NYSE:DXC) and WM Technology (NASDAQ:MAPS)

DXC Technology (NYSE:DXC) and WM Technology (NASDAQ:MAPS) are both small-cap technology companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DXC Technology	$12.64 billion	0.13	$18.00 million	$0.70	15.22
WM Technology	$174.70 million	0.36	$1.96 million	$0.02	19.50

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

Volatility and Risk

DXC Technology has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, WM Technology has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.

Institutional and Insider Ownership

96.2% of DXC Technology shares are owned by institutional investors. Comparatively, 22.0% of WM Technology shares are owned by institutional investors. 1.1% of DXC Technology shares are owned by company insiders. Comparatively, 19.7% of WM Technology shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for DXC Technology and WM Technology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DXC Technology	2	7	0	0	1.78
WM Technology	1	0	0	0	1.00

DXC Technology currently has a consensus price target of $12.21, indicating a potential upside of 14.63%. Given DXC Technology’s stronger consensus rating and higher possible upside, research analysts plainly believe DXC Technology is more favorable than WM Technology.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DXC Technology	0.99%	15.60%	3.94%
WM Technology	1.12%	1.51%	1.04%

Summary

DXC Technology beats WM Technology on 8 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 WM Technology

WM Technology, Inc. provides ecommerce and compliance software solutions to retailers and brands in cannabis market in the United States and internationally. The company offers Weedmaps marketplace that allows cannabis users to search for and browse cannabis products from retailers and brands, and reserve products from local retailers; and education and learning information to help newer consumers learn about the types of products to purchase. It also provides monthly subscription-based business software solutions, including WM Listings, WM Orders, WM Store, WM Connectors, and WM Insights as well as other add-on products, such as WM Ads, WM AdSuite, WM Customer Relationship Management, WM Dispatch, and WM Screens. WM Technology, Inc. was founded in 2008 and is headquartered in Irvine, California.