Comparing Amdocs (DOX) and Its Rivals

Amdocs (NASDAQ:DOX) is one of 56 public companies in the “IT Services” industry, but how does it compare to its competitors? We will compare Amdocs to similar businesses based on the strength of its dividends, earnings, institutional ownership, analyst recommendations, risk, profitability and valuation.

Dividends

Amdocs pays an annual dividend of $2.27 per share and has a dividend yield of 3.5%. Amdocs pays out 43.9% of its earnings in the form of a dividend. As a group, “IT Services” companies pay a dividend yield of 1.8% and pay out 34.4% of their earnings in the form of a dividend. Amdocs has raised its dividend for 14 consecutive years.

Earnings & Valuation

This table compares Amdocs and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Amdocs	$4.58 billion	$564.70 million	12.62
Amdocs Competitors	$23.72 billion	$429.69 million	95.82

Amdocs’ competitors have higher revenue, but lower earnings than Amdocs. Amdocs is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Amdocs and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amdocs	0	2	3	0	2.60
Amdocs Competitors	546	2922	5701	229	2.60

Amdocs presently has a consensus target price of $92.33, suggesting a potential upside of 41.49%. As a group, “IT Services” companies have a potential upside of 53.18%. Given Amdocs’ competitors higher probable upside, analysts plainly believe Amdocs has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

92.0% of Amdocs shares are owned by institutional investors. Comparatively, 62.6% of shares of all “IT Services” companies are owned by institutional investors. 15.4% of Amdocs shares are owned by insiders. Comparatively, 11.4% of shares of all “IT Services” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Amdocs	12.47%	20.19%	11.23%
Amdocs Competitors	-128.33%	-7.64%	3.82%

Risk & Volatility

Amdocs has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500. Comparatively, Amdocs’ competitors have a beta of -8.38, suggesting that their average stock price is 938% less volatile than the S&P 500.

Summary

Amdocs beats its competitors on 9 of the 15 factors compared.

Amdocs Company Profile

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.