Contrasting Amdocs (NASDAQ:DOX) and Ability (OTCMKTS:ABILF)

Ability (OTCMKTS:ABILF) and Amdocs (NASDAQ:DOX) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.

Risk & Volatility

Ability has a beta of -463.42, indicating that its stock price is 46,442% less volatile than the S&P 500. Comparatively, Amdocs has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500.

Insider and Institutional Ownership

92.0% of Amdocs shares are owned by institutional investors. 40.0% of Ability shares are owned by company insiders. Comparatively, 15.4% of Amdocs shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Ability and Amdocs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ability	N/A	N/A	N/A
Amdocs	11.94%	19.66%	10.95%

Analyst Ratings

This is a breakdown of current ratings and price targets for Ability and Amdocs, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ability	0	0	0	0	0.00
Amdocs	0	1	3	0	2.75

Amdocs has a consensus price target of $108.00, suggesting a potential upside of 28.17%. Given Amdocs’ stronger consensus rating and higher possible upside, analysts clearly believe Amdocs is more favorable than Ability.

Earnings & Valuation

This table compares Ability and Amdocs”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ability	N/A	N/A	N/A	N/A	N/A
Amdocs	$5.00 billion	1.90	$493.20 million	$4.93	17.09

Amdocs has higher revenue and earnings than Ability.

Summary

Amdocs beats Ability on 9 of the 10 factors compared between the two stocks.

About Ability

Ability Inc. provides systems for off-air cellular and satellite interception, and geolocation worldwide. The company engages in the interception of cellular and satellite communication networks for surveillance, border security, anti-terror, anti-crime, intelligence gathering, reconnaissance, target tracking, airport security, and tracking suspicious people for use by the ministries of defense, national agencies, secret services and security officers, federal police forces and presidential police, homeland security organizations, border control forces, integrators, anti-drug organizations and law enforcement units, and ministries of interior and justice, as well as armies, navies, and air forces. It also provides tactical and strategic interception systems for Thuraya, Iridium, and IsatPhone Pro that intercepts voice calls, SMS, data traffic, call related information, and detecting location of satellite phones; and systems to intercept VSAT, DCME, and other satellite links. In addition, the company offers cellular interception systems, which include Unlimited Interceptor, a geolocation system that detects the location of phones participating in intercepted conversations; GoDown, a system in cellular phones to change operational mode and operates as a selective jammer for prison-related projects; and In-Between Interception System that supports GSM, UMTS, and LTE networks. Further, it provides various IMSI catcher configurations and CDMA interception systems. The company was founded in 1994 and is based in Tel Aviv-Yafo, Israel.

About Amdocs

Amdocs Limited, through its subsidiaries, provides software and services worldwide. It designs, develops, operates, implements, supports, and markets open and modular cloud portfolio. The company provides CES23, a 5G and cloud-native microservices-based market-leading customer experience suite, that enables service providers to build, deliver, and monetize advanced services; Amdocs Subscription Marketplace, a software-as-a-service-based platform that includes an expansive network of pre-integrated digital services, such as media, gaming, eLearning, sports, and retail to security and business services; the monetization suite for charging, billing, policy, and revenue management; Intelligent networking suite with a set of modular, flexible, and open service lifecycle management capabilities for network automation journeys; amAIz, a telco GenAI framework; Amdocs Digital Brands Suite, a pre-integrated digital business suite; and Amdocs eSIM Cloud for service providers. It also offers AI-powered, cloud-native, and home operating systems; data intelligence solutions and applications; end-to-end application development and maintenance services; and ongoing maintenance services. In addition, the company provides a line of services designed for various stages of a service provider’s lifecycle includes consulting, delivery, quality engineering, operations, systems integration, network services, experience-driven services, data, cloud, and content services; managed services comprising application development, modernization and maintenance, IT and infrastructure services, testing and professional services that are designed to assist customers in the selection, implementation, operation, management, and maintenance of IT systems. It serves to the communications, entertainment, and media industry service providers, as well as mobile virtual network operators. Amdocs Limited was founded in 1988 and is headquartered in Saint Louis, Missouri.