Summary: DXC Technology vs. S&P 500 Over the Past 5 Years—A Real-World Performance Check
If you’ve ever wondered whether buying shares of DXC Technology (NYSE: DXC) would have outpaced simply investing in a broad S&P 500 index fund over the past five years, you’re not alone. I set out to answer this question, sifting through actual stock charts, financial news, and the kinds of expert commentary you only stumble across deep in forums or during late-night research sessions. In the following breakdown, I’ll walk you through not just the data, but the real-world process of comparing a single, sometimes volatile tech stock to the juggernaut that is the S&P 500. And yes, I’ll include what tripped me up, what surprised me, and even how regulators and international standards play into these performance comparisons.
Getting Started: Why Compare DXC to the S&P 500, and How?
First, let’s frame why this comparison matters. The S&P 500 represents the 500 largest U.S. companies and acts as a barometer for the overall health of the stock market. When you compare any single stock—especially one like DXC Technology, which has undergone restructuring and faced industry headwinds—to the S&P 500, you get a sense of both absolute and relative performance.
To answer the question, I grabbed data from Yahoo Finance, Seeking Alpha, and even double-checked with S&P Global itself. I also reviewed commentary from market analysts on Morningstar and Yahoo Finance.
Step 1: Pulling the Data—(And a Quick Fumble)
To make this practical, I opened Yahoo Finance, searched for "DXC," and hit the "5Y" (five-year) chart. Easy, right? Except, I realized I needed total return (including dividends) to be strictly accurate, since the S&P 500 returns include dividends. DXC doesn’t pay a meaningful dividend, so price return and total return are almost identical. But for the S&P 500, I needed the total return version (often labeled S&P 500 TR). I used Portfolio Visualizer for a side-by-side, apples-to-apples comparison.
Step 2: What the Charts Reveal
Here’s what the numbers look like, as of June 2024, starting from June 2019:
- DXC Technology (DXC): Down approximately 55-60% over five years. The price dropped from around $54 per share in June 2019 to ~$23 in June 2024, with some serious volatility along the way. Source: Yahoo Finance historical data
- S&P 500 Index (Total Return): Up about 85-90% over the same period (including dividends)—thanks in large part to the post-pandemic rally and tech sector outperformance. Source: S&P Global official stats
Frankly, the gap is massive. If you’d put $10,000 into DXC in 2019, you’d be down to roughly $4,000–$4,500. That same $10,000 in an S&P 500 ETF would now be worth around $18,500. Ouch.
Step 3: Digging Into the “Why”—Expert and Analyst Insights
Why the underperformance? During my research, I came across an interview with a technology sector analyst, James Anderson, on CNBC. He noted that since DXC’s formation (from the merger of CSC and HPE’s services arm), the company has struggled with client retention, margin compression, and adapting to cloud transformation—all issues that weighed on its stock price.
For context, the S&P 500’s strong performance was driven by mega-cap tech stocks—think Apple, Microsoft, and NVIDIA—while DXC was busy restructuring and fighting to keep legacy contracts. It’s like running a marathon with a backpack full of rocks while everyone else is in running shoes.
Step 4: The Process—A Quick How-To (With Screenshots)
Here’s how I visualized the comparison (if you want to try it yourself):
- Go to Yahoo Finance, search for “DXC.” Click “Chart,” adjust the time frame to “5Y.”
- Click “Compare” and add “^GSPC” (the S&P 500 index). You’ll immediately see the divergence. (Screenshot example below.)
- For total return, use Portfolio Visualizer, input “DXC” and “SPY” (a popular S&P 500 ETF), select “Reinvest Dividends,” and view the five-year return table and graph.
Source: Yahoo Finance chart showing DXC vs S&P 500, 5-year performance (June 2019–June 2024).
Step 5: Regulatory and International Context—How “Performance” Is Certified
Now, here’s a twist you might not expect: comparing stocks across borders or indices isn’t as simple as it seems. Different countries and exchanges have varying standards for what’s considered “verified” performance. The World Trade Organization (WTO), for example, has a Financial Services Agreement that impacts cross-border investment, and the OECD Principles of Corporate Governance recommend transparency in financial disclosures that influence such comparisons.
Below is a quick comparison table on international “verified trade” standards in financial markets:
| Country/Region | Standard Name | Legal Basis | Enforcement Agency | Notes |
|---|---|---|---|---|
| USA | SEC Disclosure Rules | Securities Exchange Act of 1934 | SEC | Strict on GAAP compliance, quarterly reporting |
| EU | MiFID II | Markets in Financial Instruments Directive | ESMA | Enhanced transparency, cross-border harmonization |
| Japan | Financial Instruments and Exchange Act | FIEA | JFSA | Emphasizes investor protection |
| China | CSRC disclosure requirements | Securities Law of PRC | CSRC | Focus on domestic market stability |
Sources: SEC, ESMA, JFSA, CSRC
Case Example: A Cross-Border Comparison Gone Wrong
Imagine an investor in Germany wants to compare DXC (US stock) with a German IT company like SAP. Even though both are listed on major exchanges, the reporting standards (SEC vs. ESMA), disclosure timing, and even how performance is measured (total return, price return, local currency vs. USD) can skew the results. I once tried to do this for a client, and we realized after a few hours that the SAP return figures on the Xetra exchange included dividend reinvestment in euros, while DXC’s Yahoo chart was only showing price in USD. We had to re-run everything through Portfolio Visualizer with currency adjustments. Lesson learned: always check what kind of “return” is being reported!
Industry Expert Perspective: “Don’t Just Look at the Numbers”
As Lisa Tran, a CFA charterholder and financial consultant, put it in a recent LinkedIn post:
“Investors get tripped up when they compare an individual stock’s price return with an index’s total return. It’s like comparing apples to apple pie—you’re missing the full picture. Always check the methodology and be wary of charts that don’t spell it out.”
Conclusion: What This Means for Investors (and a Few Personal Reflections)
Having walked this road myself—sometimes successfully, sometimes not—I can say with confidence that DXC Technology’s stock has significantly underperformed the S&P 500 over the past five years. The reasons are both company-specific (restructuring, legacy IT struggles) and sector-wide (the winners in tech have been the biggest, not the old guard).
If you’re thinking about investing, or just comparing stocks for fun (yes, some of us do that), always use total return, check your sources, and be mindful of international reporting standards. The devil is in the details, and as my own botched comparison with SAP taught me, getting those details wrong can totally change the story.
Maybe next time I’ll compare two stocks that are both actually growing. Or maybe I’ll just stick with the S&P 500—it’s a lot less stressful.
Next Steps
- Use Portfolio Visualizer to compare different stocks and indices, always choosing “reinvest dividends” for an accurate picture.
- Review the OECD Principles and your country’s financial regulator standards before making international comparisons.
- For deeper dives, check out official filings on the SEC EDGAR database for DXC and compare with S&P 500 ETF filings.
Author background: Ten years in financial analysis and compliance consulting, cross-border investment experience, and a chronic curiosity for “what if I’d just bought the index?” scenarios.