Reviewing ScanTech AI Systems (NASDAQ:STAI) and DXC Technology (NYSE:DXC)

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

Volatility & Risk

ScanTech AI Systems has a beta of -0.47, indicating that its share price is 147% less volatile than the S&P 500. Comparatively, DXC Technology has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.

Institutional and Insider Ownership

74.0% of ScanTech AI Systems shares are owned by institutional investors. Comparatively, 96.2% of DXC Technology shares are owned by institutional investors. 2.3% of ScanTech AI Systems shares are owned by insiders. Comparatively, 0.6% of DXC Technology shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares ScanTech AI Systems and DXC Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ScanTech AI Systems	-477.09%	-11.25%	209.23%
DXC Technology	3.34%	17.56%	4.49%

Valuation and Earnings

This table compares ScanTech AI Systems and DXC Technology”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ScanTech AI Systems	$1.88 million	0.55	-$23.07 million	($9.20)	-0.02
DXC Technology	$12.68 billion	0.16	$389.00 million	$2.33	5.22

DXC Technology has higher revenue and earnings than ScanTech AI Systems. ScanTech AI Systems 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 summary of current ratings for ScanTech AI Systems and DXC Technology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ScanTech AI Systems	1	0	0	0	1.00
DXC Technology	3	6	0	1	1.90

DXC Technology has a consensus price target of $14.71, indicating a potential upside of 20.98%. Given DXC Technology’s stronger consensus rating and higher probable upside, analysts clearly believe DXC Technology is more favorable than ScanTech AI Systems.

Summary

DXC Technology beats ScanTech AI Systems on 11 of the 14 factors compared between the two stocks.

About ScanTech AI Systems

Scantech AI Systems, Inc. engages in the innovation, emerging technology, and machine learning expertise. ScanTech specializes in developing advanced screening technology that provides the most accurate and fastest detection of prohibited materials. The company was founded on September 5, 2023 and is headquartered in Buford, GA.

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.