DXC Technology (NYSE:DXC) and Urgent.ly (OTCMKTS:ULYX) Financial Analysis

DXC Technology (NYSE:DXC) and Urgent.ly (OTCMKTS:ULYX) are both small-cap technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, analyst recommendations, valuation and dividends.

Earnings and Valuation

This table compares DXC Technology and Urgent.ly”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DXC Technology	$12.64 billion	0.14	$18.00 million	$0.70	15.47
Urgent.ly	$129.19 million	0.09	-$20.43 million	($13.82)	-0.40

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

Risk & Volatility

DXC Technology has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500. Comparatively, Urgent.ly has a beta of -5.01, meaning that its stock price is 601% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for DXC Technology and Urgent.ly, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DXC Technology	2	7	0	0	1.78
Urgent.ly	1	1	1	0	2.00

DXC Technology presently has a consensus price target of $12.21, indicating a potential upside of 12.76%. Urgent.ly has a consensus price target of $6.75, indicating a potential upside of 22.84%. Given Urgent.ly’s stronger consensus rating and higher possible upside, analysts clearly believe Urgent.ly is more favorable than DXC Technology.

Institutional and Insider Ownership

96.2% of DXC Technology shares are held by institutional investors. Comparatively, 28.3% of Urgent.ly shares are held by institutional investors. 1.1% of DXC Technology shares are held by company insiders. Comparatively, 3.1% of Urgent.ly shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares DXC Technology and Urgent.ly’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%
Urgent.ly	-15.81%	N/A	-47.23%

Summary

DXC Technology beats Urgent.ly 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 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 Urgent.ly

URGENT.LY INC