Financial Contrast: Amdocs (NASDAQ:DOX) and Jack Henry & Associates (NASDAQ:JKHY)

Amdocs (NASDAQ:DOX) and Jack Henry & Associates (NASDAQ:JKHY) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, institutional ownership, dividends and earnings.

Profitability

This table compares Amdocs and Jack Henry & Associates’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amdocs	12.47%	20.19%	11.23%
Jack Henry & Associates	20.59%	23.75%	16.80%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Amdocs and Jack Henry & Associates, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amdocs	0	2	3	0	2.60
Jack Henry & Associates	0	4	9	1	2.79

Amdocs presently has a consensus target price of $92.33, indicating a potential upside of 36.53%. Jack Henry & Associates has a consensus target price of $200.15, indicating a potential upside of 29.92%. Given Amdocs’ higher probable upside, analysts plainly believe Amdocs is more favorable than Jack Henry & Associates.

Institutional and Insider Ownership

92.0% of Amdocs shares are owned by institutional investors. Comparatively, 98.8% of Jack Henry & Associates shares are owned by institutional investors. 15.4% of Amdocs shares are owned by company insiders. Comparatively, 0.6% of Jack Henry & Associates shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Amdocs pays an annual dividend of $2.28 per share and has a dividend yield of 3.4%. Jack Henry & Associates pays an annual dividend of $2.44 per share and has a dividend yield of 1.6%. Amdocs pays out 44.1% of its earnings in the form of a dividend. Jack Henry & Associates pays out 35.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Amdocs has increased its dividend for 14 consecutive years and Jack Henry & Associates has increased its dividend for 35 consecutive years.

Volatility & Risk

Amdocs has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500. Comparatively, Jack Henry & Associates has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.

Valuation & Earnings

This table compares Amdocs and Jack Henry & Associates”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amdocs	$4.53 billion	1.61	$564.70 million	$5.17	13.08
Jack Henry & Associates	$2.46 billion	4.51	$455.75 million	$6.96	22.14

Amdocs has higher revenue and earnings than Jack Henry & Associates. Amdocs is trading at a lower price-to-earnings ratio than Jack Henry & Associates, indicating that it is currently the more affordable of the two stocks.

Summary

Jack Henry & Associates beats Amdocs on 13 of the 18 factors compared between the two stocks.

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.

About Jack Henry & Associates

Jack Henry & Associates, Inc. is a financial technology company, which engages in the provision of technology solutions and payment processing services. It operates through the following segments: Core, Payments, Complementary, and Corporate and Other. The Core segment provides core information processing platforms to banks and credit unions which consist of integrated applications required to process deposit, loan, and general ledger transactions, and maintain centralized customer and member information. The Payments segment includes secure payment processing tools and services including ATM, debit, and credit card processing services, online and mobile bill pay solutions, ACH origination and remote deposit capture processing, and risk management products and services. The Complementary segment focuses on additional software, hosted processing platforms, and services including call center support, network security management, consulting, and monitoring. The Corporate and Other segment offers hardware and other products. The company was founded by Jerry D. Hall and John W. Henry in 1976 and is headquartered in Monett, MO.