Head to Head Comparison: Xerox (NASDAQ:XRX) versus Diebold Nixdorf (NYSE:DBD)

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

Valuation and Earnings

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

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

Diebold Nixdorf has lower revenue, but higher earnings 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.

Institutional & Insider Ownership

85.4% of Xerox shares are owned by institutional investors. Comparatively, 97.0% of Diebold Nixdorf shares are owned by institutional investors. 1.5% of Xerox shares are owned by company insiders. Comparatively, 1.1% of Diebold Nixdorf shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

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

Analyst Ratings

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

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

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

Risk & Volatility

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

Summary

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

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.

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.