VNET Group (NASDAQ:VNET) & DXC Technology (NYSE:DXC) Head-To-Head Comparison

DXC Technology (NYSE:DXC) and VNET Group (NASDAQ:VNET) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, analyst recommendations, valuation, earnings and risk.

Volatility & Risk

DXC Technology has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500. Comparatively, VNET Group has a beta of 0.23, indicating that its stock price is 77% less volatile than the S&P 500.

Insider and Institutional Ownership

96.2% of DXC Technology shares are owned by institutional investors. Comparatively, 72.8% of VNET Group shares are owned by institutional investors. 1.1% of DXC Technology shares are owned by insiders. Comparatively, 12.1% of VNET Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares DXC Technology and VNET Group”s top-line 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	0.17	$18.00 million	$0.70	19.74
VNET Group	$10.74 billion	0.11	-$36.01 million	($1.42)	-2.97

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for DXC Technology and VNET Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DXC Technology	2	7	0	0	1.78
VNET Group	1	1	4	0	2.50

DXC Technology currently has a consensus target price of $12.21, suggesting a potential downside of 11.59%. VNET Group has a consensus target price of $16.90, suggesting a potential upside of 301.08%. Given VNET Group’s stronger consensus rating and higher probable upside, analysts plainly believe VNET Group is more favorable than DXC Technology.

Profitability

This table compares DXC Technology and VNET Group’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%
VNET Group	-22.29%	-36.25%	-4.43%

Summary

DXC Technology beats VNET Group 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 VNET Group

VNET Group, Inc., an investment holding company, provides hosting and related services in China. It offers managed hosting services consisting of managed retail services, such as colocation services that dedicate data center space to house customers' servers and networking equipment, as well as allow customers to lease partial or entire cabinets for their servers; interconnectivity services that allow customers to connect their servers; value-added services, including hybrid IT, bare metal, firewall, server load balancing, data backup and recovery, data center management, server management, and backup server services; cloud services that allow customers to run applications over the internet using IT infrastructure; and VPN Services that extend customers' private networks by setting up connections through the public internet. The company also provides server administration services, such as operating system support and assistance with updates, server monitoring, server backup and restoration, server security evaluation, firewall services, and disaster recovery services. It serves information technology and cloud services, communications and social networking, gaming and entertainment, e-commerce, automobile, financial services, and blue-chip and small-to-mid-sized enterprises; government agencies; individuals; and telecommunication carriers. The company was formerly known as 21Vianet Group, Inc. and changed its name to VNET Group, Inc. in October 2021. VNET Group, Inc. was founded in 1999 and is headquartered in Beijing, the People's Republic of China.