Head to Head Review: DXC Technology (NYSE:DXC) & Brightcove (NYSE:BCOV)
DXC Technology (NYSE:DXC) and Brightcove (NASDAQ:BCOV) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, risk, profitability, valuation and earnings.
Institutional and Insider Ownership
87.9% of DXC Technology shares are held by institutional investors. Comparatively, 73.1% of Brightcove shares are held by institutional investors. 0.8% of DXC Technology shares are held by insiders. Comparatively, 1.9% of Brightcove shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares DXC Technology and Brightcove’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|DXC Technology||$20.75 billion||0.43||$1.26 billion||$8.34||4.13|
|Brightcove||$164.83 million||2.17||-$14.03 million||($0.27)||-34.11|
DXC Technology has higher revenue and earnings than Brightcove. Brightcove is trading at a lower price-to-earnings ratio than DXC Technology, indicating that it is currently the more affordable of the two stocks.
This table compares DXC Technology and Brightcove’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
DXC Technology has a beta of 2.02, meaning that its stock price is 102% more volatile than the S&P 500. Comparatively, Brightcove has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500.
This is a summary of recent recommendations and price targets for DXC Technology and Brightcove, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
DXC Technology presently has a consensus target price of $51.38, suggesting a potential upside of 49.03%. Brightcove has a consensus target price of $14.00, suggesting a potential upside of 52.01%. Given Brightcove’s stronger consensus rating and higher probable upside, analysts clearly believe Brightcove is more favorable than DXC Technology.
DXC Technology beats Brightcove on 10 of the 14 factors compared between the two stocks.
About DXC Technology
DXC Technology Company, together with its subsidiaries, provides information technology services and solutions primarily in North America, Europe, Asia, and Australia. It operates through three segments: Global Business Services (GBS), Global Infrastructure Services (GIS), and United States Public Sector (USPS). The GBS segment offers technology solutions comprising enterprise, cloud application, and consulting services; application services; analytics services; business process services; and industry software and solutions. The GIS segment offers cloud and platform services; workplace, mobility, and Internet of Things services; and security solutions. The USPS segment delivers IT services and business solutions to all levels of government in the United States. This segment offers cloud, platform, and IT outsourcing services; enterprise and cloud application services; enterprise security solutions; mobile enterprise, virtual desktop and application, and workplace device services; and analytics services, such as analytics platforms, information governance, artificial intelligence, and advisory services. The company was formerly known as Computer Sciences Corporation and changed its name to DXC Technology Company in April 2017 as a result of its merger with the Enterprise Services business of Hewlett Packard Enterprise Company. DXC Technology Company was founded in 1959 and is headquartered in Tysons, Virginia.
Brightcove Inc. provides cloud-based services for video. It offers Video Cloud, an online video platform that enables its customers to publish and distribute video to Internet-connected devices. The company also provides Zencoder, a cloud-based video encoding service for file support, quality and control, speed and reliability, platform and security, and account and integration; SSAI, a cloud-based ad insertion and video stitching service; and Player, a cloud-based service for creating and managing video player experiences. In addition, it offers Video Marketing Suite, a suite of video technologies to address the needs of marketers to drive awareness, engagement, and conversion; OTT Flow, a service for media companies and content owners to deploy direct-to-consumer, live and on-demand video services across platforms; and Enterprise video suite, an enterprise-class platform for internal communications, employee training, live streaming, marketing, and e-commerce videos. Further, the company provides account management, professional, support, and online and onsite training services. It serves media companies, broadcasters, publishers, sports and entertainment companies, fashion and hospitality brands and corporations, faith-based institutions, e-commerce platforms, and hi-tech organizations; and governments, educational institutions, and non-profit organizations through direct sales, referral partners, channel partners, and resellers in North America, Europe, Japan, the Asia Pacific, and internationally, as well as sells its products online. The company was formerly known as Video Marketplace, Inc. and changed its name to Brightcove Inc. in March 2005. Brightcove Inc. was founded in 2004 and is headquartered in Boston, Massachusetts.
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