DXC
DXC Technology Company
Information Technology Services
Market Cap$1.95B
5Y Perf.-19.3%
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Stock Comparison
DXC vs CTSH
Revenue, margins, valuation, and 5-year total return — side by side.
CTSH
Cognizant Technology Solutions Corporation
Information Technology Services
Market Cap$24.32B
5Y Perf.-3.2%
DXC vs CTSH — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | DXC | CTSH |
|---|---|---|
| Industry | Information Technology Services | Information Technology Services |
| Market Cap | $1.95B | $24.32B |
| Revenue (TTM) | $12.68B | $21.41B |
| Net Income (TTM) | $423M | $2.23B |
| Gross Margin | 19.7% | 32.1% |
| Operating Margin | 5.4% | 15.7% |
| Forward P/E | 3.6x | 9.0x |
| Total Debt | $4.55B | $1.57B |
| Cash & Equiv. | $1.80B | $1.90B |
DXC vs CTSH — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
DXC
CTSH
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| DXC Technology Comp… (DXC) | 100 | 80.7 | -19.3% |
| Cognizant Technolog… (CTSH) | 100 | 96.8 | -3.2% |
Price return only. Dividends and distributions are not included.
Quick Verdict: DXC vs CTSH
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: CTSH leads in 5 of 7 categories, making it the strongest pick for growth and revenue expansion and profitability and margin quality. DXC Technology Company is the stronger pick specifically for valuation and capital efficiency and recent price momentum and sentiment. As sector peers, any of these can serve as alternatives in the same allocation.
DXC
DXC Technology Company
The Value Play
DXC is the clearest fit if your priority is value and momentum.
- Lower P/E (3.6x vs 9.0x)
- -26.0% vs CTSH's -32.3%
Best for: value and momentum
CTSH
Cognizant Technology Solutions Corporation
The Income Pick
CTSH carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 9 yrs, beta 0.75, yield 2.5%
- Rev growth 7.0%, EPS growth 0.9%, 3Y rev CAGR 2.8%
- -0.5% 10Y total return vs DXC's -50.5%
Best for: income & stability and growth exposure
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | CTSH | 7.0% revenue growth vs DXC's -5.8% |
| Value | DXC | Lower P/E (3.6x vs 9.0x) |
| Quality / Margins | CTSH | 10.4% margin vs DXC's 3.3% |
| Stability / Safety | CTSH | Beta 0.75 vs DXC's 1.44, lower leverage |
| Dividends | CTSH | 2.5% yield; 9-year raise streak; the other pay no meaningful dividend |
| Momentum (1Y) | DXC | -26.0% vs CTSH's -32.3% |
| Efficiency (ROA) | CTSH | 10.9% ROA vs DXC's 3.2%, ROIC 18.7% vs 8.1% |
DXC vs CTSH — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
FY 2025
DXC vs CTSH — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLCTSHLAGGINGDXC
DXCDXC Technology Company
1leads
CTSHCognizant Technology …
4leads
6 Total Categories
CATEGORYLEADERvs DXCMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
CTSH5/6
Valuation MetricsMultiples, price ratios, and targets
DXC6/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
CTSH8/9
Total Returns1Y, 3Y, 5Y total returns with dividends
CTSH4/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
CTSH1/1
Income & Cash Flow (Last 12 Months)
CTSH leads this category, winning 5 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
CTSH is the larger business by revenue, generating $21.4B annually — 1.7x DXC's $12.7B. CTSH is the more profitable business, keeping 10.4% of every revenue dollar as net income compared to DXC's 3.3%. On growth, CTSH holds the edge at +5.8% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | DXCDXC Technology Co… | CTSHCognizant Technol… |
|---|---|---|
| RevenueTrailing 12 months | $12.7B | $21.4B |
| EBITDAEarnings before interest/tax | $1.9B | $3.9B |
| Net IncomeAfter-tax profit | $423M | $2.2B |
| Free Cash FlowCash after capex | $1.1B | $2.5B |
| Gross MarginGross profit ÷ Revenue | +19.7% | +32.1% |
| Operating MarginEBIT ÷ Revenue | +5.4% | +15.7% |
| Net MarginNet income ÷ Revenue | +3.3% | +10.4% |
| FCF MarginFCF ÷ Revenue | +8.7% | +11.5% |
| Rev. Growth (YoY)Latest quarter vs prior year | -1.0% | +5.8% |
| EPS Growth (YoY)Latest quarter vs prior year | +90.3% | +3.7% |
CTSH leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
DXC leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
At 5.5x trailing earnings, DXC trades at a 52% valuation discount to CTSH's 11.3x P/E. On an enterprise value basis, DXC's 2.3x EV/EBITDA is more attractive than CTSH's 5.9x.
| Metric | DXCDXC Technology Co… | CTSHCognizant Technol… |
|---|---|---|
| Market CapShares × price | $1.9B | $24.3B |
| Enterprise ValueMkt cap + debt − cash | $4.7B | $24.0B |
| Trailing P/EPrice ÷ TTM EPS | 5.46x | 11.28x |
| Forward P/EPrice ÷ next-FY EPS est. | 3.61x | 9.03x |
| PEG RatioP/E ÷ EPS growth rate | — | 0.93x |
| EV / EBITDAEnterprise value multiple | 2.34x | 5.88x |
| Price / SalesMarket cap ÷ Revenue | 0.15x | 1.15x |
| Price / BookPrice ÷ Book value/share | 0.61x | 1.65x |
| Price / FCFMarket cap ÷ FCF | 2.37x | 9.37x |
DXC leads this category, winning 6 of 6 comparable metrics.
Profitability & Efficiency
CTSH leads this category, winning 8 of 9 comparable metrics.
Profitability & Efficiency
CTSH delivers a 14.8% return on equity — every $100 of shareholder capital generates $15 in annual profit, vs $12 for DXC. CTSH carries lower financial leverage with a 0.10x debt-to-equity ratio, signaling a more conservative balance sheet compared to DXC's 1.30x. On the Piotroski fundamental quality scale (0–9), DXC scores 8/9 vs CTSH's 6/9, reflecting strong financial health.
| Metric | DXCDXC Technology Co… | CTSHCognizant Technol… |
|---|---|---|
| ROE (TTM)Return on equity | +12.4% | +14.8% |
| ROA (TTM)Return on assets | +3.2% | +10.9% |
| ROICReturn on invested capital | +8.1% | +18.7% |
| ROCEReturn on capital employed | +7.6% | +21.1% |
| Piotroski ScoreFundamental quality 0–9 | 8 | 6 |
| Debt / EquityFinancial leverage | 1.30x | 0.10x |
| Net DebtTotal debt minus cash | $2.8B | -$326M |
| Cash & Equiv.Liquid assets | $1.8B | $1.9B |
| Total DebtShort + long-term debt | $4.5B | $1.6B |
| Interest CoverageEBIT ÷ Interest expense | 4.23x | 107.78x |
CTSH leads this category, winning 8 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
CTSH leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in CTSH five years ago would be worth $7,596 today (with dividends reinvested), compared to $3,393 for DXC. Over the past 12 months, DXC leads with a -26.0% total return vs CTSH's -32.3%. The 3-year compound annual growth rate (CAGR) favors CTSH at -3.7% vs DXC's -20.1% — a key indicator of consistent wealth creation.
| Metric | DXCDXC Technology Co… | CTSHCognizant Technol… |
|---|---|---|
| YTD ReturnYear-to-date | -18.5% | -36.4% |
| 1-Year ReturnPast 12 months | -26.0% | -32.3% |
| 3-Year ReturnCumulative with dividends | -49.0% | -10.8% |
| 5-Year ReturnCumulative with dividends | -66.1% | -24.0% |
| 10-Year ReturnCumulative with dividends | -50.5% | -0.5% |
| CAGR (3Y)Annualised 3-year return | -20.1% | -3.7% |
CTSH leads this category, winning 4 of 6 comparable metrics.
Risk & Volatility
Evenly matched — DXC and CTSH each lead in 1 of 2 comparable metrics.
Risk & Volatility
CTSH is the less volatile stock with a 0.75 beta — it tends to amplify market swings less than DXC's 1.44 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. DXC currently trades 66.5% from its 52-week high vs CTSH's 59.0% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | DXCDXC Technology Co… | CTSHCognizant Technol… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.44x | 0.75x |
| 52-Week HighHighest price in past year | $17.26 | $87.03 |
| 52-Week LowLowest price in past year | $11.07 | $50.81 |
| % of 52W HighCurrent price vs 52-week peak | +66.5% | +59.0% |
| RSI (14)Momentum oscillator 0–100 | 46.6 | 24.7 |
| Avg Volume (50D)Average daily shares traded | 2.8M | 6.0M |
Evenly matched — DXC and CTSH each lead in 1 of 2 comparable metrics.
Analyst Outlook
CTSH leads this category, winning 1 of 1 comparable metric.
Analyst Outlook
Wall Street rates DXC as "Hold" and CTSH as "Hold". Consensus price targets imply 62.3% upside for CTSH (target: $83) vs 13.3% for DXC (target: $13). CTSH is the only dividend payer here at 2.47% yield — a key consideration for income-focused portfolios.
| Metric | DXCDXC Technology Co… | CTSHCognizant Technol… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $13.00 | $83.33 |
| # AnalystsCovering analysts | 24 | 51 |
| Dividend YieldAnnual dividend ÷ price | — | +2.5% |
| Dividend StreakConsecutive years of raises | 0 | 9 |
| Dividend / ShareAnnual DPS | — | $1.27 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.7% | +5.7% |
CTSH leads this category, winning 1 of 1 comparable metric.
Key Takeaway
CTSH leads in 4 of 6 categories (Income & Cash Flow, Profitability & Efficiency). DXC leads in 1 (Valuation Metrics). 1 tied.
Best OverallCognizant Technology Soluti… (CTSH)Leads 4 of 6 categories
Loading custom metrics...
DXC vs CTSH: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is DXC or CTSH a better buy right now?
For growth investors, Cognizant Technology Solutions Corporation (CTSH) is the stronger pick with 7.
0% revenue growth year-over-year, versus -5. 8% for DXC Technology Company (DXC). DXC Technology Company (DXC) offers the better valuation at 5. 5x trailing P/E (3. 6x forward), making it the more compelling value choice. Analysts rate DXC Technology Company (DXC) a "Hold" — based on 24 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — DXC or CTSH?
On trailing P/E, DXC Technology Company (DXC) is the cheapest at 5.
5x versus Cognizant Technology Solutions Corporation at 11. 3x. On forward P/E, DXC Technology Company is actually cheaper at 3. 6x.
03Which is the better long-term investment — DXC or CTSH?
Over the past 5 years, Cognizant Technology Solutions Corporation (CTSH) delivered a total return of -24.
0%, compared to -66. 1% for DXC Technology Company (DXC). Over 10 years, the gap is even starker: CTSH returned -0. 5% versus DXC's -50. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — DXC or CTSH?
By beta (market sensitivity over 5 years), Cognizant Technology Solutions Corporation (CTSH) is the lower-risk stock at 0.
75β versus DXC Technology Company's 1. 44β — meaning DXC is approximately 91% more volatile than CTSH relative to the S&P 500. On balance sheet safety, Cognizant Technology Solutions Corporation (CTSH) carries a lower debt/equity ratio of 10% versus 130% for DXC Technology Company — giving it more financial flexibility in a downturn.
05Which is growing faster — DXC or CTSH?
By revenue growth (latest reported year), Cognizant Technology Solutions Corporation (CTSH) is pulling ahead at 7.
0% versus -5. 8% for DXC Technology Company (DXC). On earnings-per-share growth, the picture is similar: DXC Technology Company grew EPS 356. 5% year-over-year, compared to 0. 9% for Cognizant Technology Solutions Corporation. Over a 3-year CAGR, CTSH leads at 2. 8% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — DXC or CTSH?
Cognizant Technology Solutions Corporation (CTSH) is the more profitable company, earning 10.
6% net margin versus 3. 0% for DXC Technology Company — meaning it keeps 10. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CTSH leads at 16. 7% versus 5. 4% for DXC. At the gross margin level — before operating expenses — CTSH leads at 33. 7%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is DXC or CTSH more undervalued right now?
On forward earnings alone, DXC Technology Company (DXC) trades at 3.
6x forward P/E versus 9. 0x for Cognizant Technology Solutions Corporation — 5. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CTSH: 62. 3% to $83. 33.
08Which pays a better dividend — DXC or CTSH?
In this comparison, CTSH (2.
5% yield) pays a dividend. DXC does not pay a meaningful dividend and should not be held primarily for income.
09Is DXC or CTSH better for a retirement portfolio?
For long-horizon retirement investors, Cognizant Technology Solutions Corporation (CTSH) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
75), 2. 5% yield). Both have compounded well over 10 years (CTSH: -0. 5%, DXC: -50. 5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between DXC and CTSH?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
CTSH pays a dividend while DXC does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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Revenue Growth>
%
(DXC: -1.0% · CTSH: 5.8%)Net Margin>
%
(DXC: 3.3% · CTSH: 10.4%)P/E Ratio<
x
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