Xerox (NASDAQ:XRX) versus Diebold Nixdorf (NYSE:DBD) Head-To-Head Contrast

Diebold Nixdorf (NYSE:DBD) and Xerox (NASDAQ:XRX) are both technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, earnings and valuation.

Profitability

This table compares Diebold Nixdorf and Xerox’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Diebold Nixdorf	2.87%	21.16%	5.90%
Xerox	-11.93%	17.61%	0.65%

Insider and Institutional Ownership

97.0% of Diebold Nixdorf shares are held by institutional investors. Comparatively, 85.4% of Xerox shares are held by institutional investors. 1.1% of Diebold Nixdorf shares are held by company insiders. Comparatively, 1.5% of Xerox shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Diebold Nixdorf has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500. Comparatively, Xerox has a beta of 2.45, indicating that its share price is 145% more volatile than the S&P 500.

Valuation and Earnings

This table compares Diebold Nixdorf and Xerox”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diebold Nixdorf	$3.81 billion	0.57	$94.60 million	$3.06	20.98
Xerox	$7.02 billion	0.05	-$1.03 billion	($7.38)	-0.37

Diebold Nixdorf has higher earnings, but lower revenue than Xerox. Xerox is trading at a lower price-to-earnings ratio than Diebold Nixdorf, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and price targets for Diebold Nixdorf and Xerox, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diebold Nixdorf	0	0	2	1	3.33
Xerox	2	1	1	0	1.75

Diebold Nixdorf currently has a consensus price target of $100.00, indicating a potential upside of 55.80%. Xerox has a consensus price target of $4.17, indicating a potential upside of 54.04%. Given Diebold Nixdorf’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Diebold Nixdorf is more favorable than Xerox.

Summary

Diebold Nixdorf beats Xerox on 12 of the 15 factors compared between the two stocks.

About Diebold Nixdorf

Diebold Nixdorf, Incorporated engages in the automating, digitizing, and transforming the way people bank and shop worldwide. It operates through two segments, Banking and Retail. The company offers cash recyclers and dispensers, intelligent deposit terminals, teller automation tools, and kiosk technologies, as well as physical security solutions; and front-end applications for consumer connection points and back-end platforms that manage channel transactions, operations and integration, and facilitate omnichannel transactions, endpoint monitoring, remote asset management, customer marketing, merchandise management, and analytics. It also provides banking product-related services comprising proactive monitoring and rapid resolution of incidents through remote service capabilities or an on-site visit; first- and second-line maintenance, preventive maintenance, and on-demand services; managed and outsourcing services, such as business processes, solution management, upgrades, and transaction processing; and cash management services. In addition, the company offers DN Vynamic software suite to simplify and enhance the consumer experience; modular and integrated point of sale and self-checkout terminals; printers, scales, and mobile scanners; and banknote and coin processing systems, as well as ordering kiosks. Additionally, it provides retail customer's product-related services, such as on-demand and professional services; maintenance and availability services; implementation services; managed mobility services; monitoring and advanced analytics; and store life-cycle management services. The company was formerly known as Diebold, Incorporated and changed its name to Diebold Nixdorf, Incorporated in December 2016. Diebold Nixdorf, Incorporated was founded in 1859 and is headquartered in North Canton, Ohio.

About Xerox

Xerox Holdings Corporation, together with its subsidiaries, operates as a workplace technology company that integrates hardware, services, and software for enterprises in the Americas, Europe, the Middle East, Africa, India, and internationally. The company operates through two segments, Print and Other; and FITTLE. The Print and Other segment designs, develops, and sells document systems, solutions, and services; and IT and software products and services. The FITTLE segment offers financing solutions for direct channel customer purchases; and lease financing to end-users. It also offers workplace solutions comprising desktop monochrome, color, and multifunction printers, and ConnectKey software; digital printing presses and light production devices; and digital services that support workflow automation, personalization and communication software, content management solutions, and digitization services. In addition, the company provides graphic communications, in-plant, and production solutions; FreeFlow, a software solutions for the automation and integration of processing of print job comprising file preparation, final production, and electronic publishing; and IT services, end user computing devices, network infrastructure, and communications technology, as well as technology product support, professional engineering, and commercial robotic process automation. Further, it sells paper products and standalone software, such as CareAR, DocuShare, and XMPie; and invests in startups. The company sells its products through its direct sales force, distributors, independent agents, dealers, value-added resellers, systems integrators, and e-commerce marketplaces. The company was formerly known as Xerox Corporation and changed its name to Xerox Holdings Corporation in August 2019. Xerox Holdings Corporation was founded in 1903 and is headquartered in Norwalk, Connecticut.