Critical Review: Global Blue Group (NYSE:GB) and DXC Technology (NYSE:DXC)

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Global Blue Group and DXC Technology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Blue Group	0	0	1	0	3.00
DXC Technology	2	7	0	0	1.78

Global Blue Group presently has a consensus target price of $6.00, indicating a potential upside of 7.72%. DXC Technology has a consensus target price of $20.89, indicating a potential downside of 1.33%. Given Global Blue Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Global Blue Group is more favorable than DXC Technology.

Profitability

This table compares Global Blue Group and DXC Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Global Blue Group	7.32%	48.62%	2.67%
DXC Technology	0.18%	20.42%	4.69%

Institutional & Insider Ownership

89.7% of Global Blue Group shares are held by institutional investors. Comparatively, 96.2% of DXC Technology shares are held by institutional investors. 0.5% of DXC Technology shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Global Blue Group and DXC Technology”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Blue Group	$458.29 million	2.31	$15.12 million	$0.14	39.79
DXC Technology	$13.67 billion	0.28	$91.00 million	$0.08	264.66

DXC Technology has higher revenue and earnings than Global Blue Group. Global Blue 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.

Risk & Volatility

Global Blue Group has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500. Comparatively, DXC Technology has a beta of 1.67, meaning that its stock price is 67% more volatile than the S&P 500.

About Global Blue Group

Global Blue Group Holding AG, together with its subsidiaries, provides technology-enabled transaction processing services for merchants, banks, acquirers, governments, and travelers in Europe, the Asia Pacific, and internationally. The company operates in three segments: Tax Free Shopping Technology Solutions (TFSS), Added-Value Payment Solutions (AVPS), and Retail Tech Solutions (RTS). It offers TFSS, a value added tax (VAT) refund service that allows eligible shoppers to reclaim VAT on goods purchased outside of their home country; and intelligence and marketing services. The company also provides AVPS, a service which enables customers to pay in their choice of preferred currency, home or destination, and at the point of sale (POS) when shopping outside of their home country under the Dynamic Currency Choice and Currency Select brands. In addition, it offers currency conversion services for POS, e-commerce return solutions, dynamic currency conversion (DCC) services, and DCC services at ATMs, as well as multi-currency processing services for online retailers. Further, the company provides ZigZag, a technology platform that fully digitalizes the eCommerce returns experience and enhances the process for both retailers and consumers; Yocuda that enables retailers to send digital receipts to their customers; and ShipUp, a post-purchase engagement solution for online purchases enabling brands to deliver seamless, proactive, and branded post-purchase communication. Global Blue Group Holding AG was founded in 1980 and is headquartered in Wangen-Brüttisellen, Switzerland.

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.