Financial Survey: Grid Dynamics (NASDAQ:GDYN) & DXC Technology (NYSE:DXC)
by Renee Jackson · The Cerbat GemGrid Dynamics (NASDAQ:GDYN – Get Free Report) and DXC Technology (NYSE:DXC – Get Free Report) are both small-cap technology companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.
Institutional & Insider Ownership
71.2% of Grid Dynamics shares are held by institutional investors. Comparatively, 96.2% of DXC Technology shares are held by institutional investors. 6.5% of Grid Dynamics shares are held by insiders. Comparatively, 1.1% of DXC Technology shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
Grid Dynamics has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, DXC Technology has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations and price targets for Grid Dynamics and DXC Technology, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Grid Dynamics | 2 | 1 | 4 | 1 | 2.50 |
| DXC Technology | 2 | 7 | 0 | 0 | 1.78 |
Grid Dynamics presently has a consensus price target of $9.40, indicating a potential upside of 17.79%. DXC Technology has a consensus price target of $12.21, indicating a potential upside of 7.11%. Given Grid Dynamics’ stronger consensus rating and higher probable upside, equities analysts clearly believe Grid Dynamics is more favorable than DXC Technology.
Profitability
This table compares Grid Dynamics and DXC Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Grid Dynamics | 0.68% | 1.90% | 1.66% |
| DXC Technology | 0.99% | 15.60% | 3.94% |
Earnings and Valuation
This table compares Grid Dynamics and DXC Technology”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Grid Dynamics | $411.83 million | 1.57 | $9.67 million | $0.02 | 399.00 |
| DXC Technology | $12.64 billion | 0.14 | $18.00 million | $0.70 | 16.29 |
DXC Technology has higher revenue and earnings than Grid Dynamics. DXC Technology is trading at a lower price-to-earnings ratio than Grid Dynamics, indicating that it is currently the more affordable of the two stocks.
Summary
Grid Dynamics beats DXC Technology on 8 of the 15 factors compared between the two stocks.
About Grid Dynamics
Grid Dynamics Holdings, Inc., together with its subsidiaries, provides technology consulting, platform and product engineering, and analytics services in North America, Europe, and internationally. It offers cloud platform and product engineering services, such as architecting, designing, and building scalable and secure cloud-based platforms and business applications; and AI/machine learning and data platform engineering services that build platforms to facilitate batch and streaming data ingestion, quality governance, orchestration, semantic modeling, observability, and analysis at scale. The company provides digital engagement services, including digital ecosystem design and implementation; and supply chain, Internet of Thing, and advanced manufacturing, which focuses on transforming traditional operations into smart and connected ecosystems. It serves customers that operate in the tech, media, telecommunications, retail, consumer packaged goods, manufacturing, and finance industries. The company was formerly known as ChaSerg Technology Acquisition Corp. and changed its name to Grid Dynamics Holdings, Inc. Grid Dynamics Holdings, Inc. was founded in 2006 and is headquartered in San Ramon, California.
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.