Science Applications International (NASDAQ:SAIC – Get Free Report) and Amdocs (NASDAQ:DOX – Get Free Report) are both mid-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Science Applications International and Amdocs, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Science Applications International | 1 | 8 | 2 | 0 | 2.09 |
| Amdocs | 1 | 3 | 3 | 0 | 2.29 |
Science Applications International presently has a consensus target price of $115.22, indicating a potential downside of 0.25%. Amdocs has a consensus target price of $86.67, indicating a potential upside of 64.67%. Given Amdocs’ stronger consensus rating and higher possible upside, analysts clearly believe Amdocs is more favorable than Science Applications International.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Science Applications International | $7.26 billion | 0.67 | $358.00 million | $8.88 | 13.01 |
| Amdocs | $4.53 billion | 1.25 | $564.70 million | $5.00 | 10.53 |
Amdocs has lower revenue, but higher earnings than Science Applications International. Amdocs is trading at a lower price-to-earnings ratio than Science Applications International, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Science Applications International and Amdocs’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Science Applications International | 5.55% | 36.96% | 10.32% |
| Amdocs | 11.81% | 19.77% | 10.87% |
Institutional and Insider Ownership
76.0% of Science Applications International shares are owned by institutional investors. Comparatively, 92.0% of Amdocs shares are owned by institutional investors. 0.7% of Science Applications International shares are owned by insiders. Comparatively, 15.4% of Amdocs shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Dividends
Science Applications International pays an annual dividend of $1.48 per share and has a dividend yield of 1.3%. Amdocs pays an annual dividend of $2.28 per share and has a dividend yield of 4.3%. Science Applications International pays out 16.7% of its earnings in the form of a dividend. Amdocs pays out 45.6% 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. Amdocs is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk and Volatility
Science Applications International has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500. Comparatively, Amdocs has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500.
Summary
Amdocs beats Science Applications International on 12 of the 17 factors compared between the two stocks.
About Science Applications International
Science Applications International Corporation provides technical, engineering, and enterprise information technology (IT) services primarily in the United States. The company’s offerings include engineering; technology integration; IT modernization; maintenance of ground and maritime systems; logistics; training and simulation; operation and program support services; and end-to-end services, such as design, development, integration, deployment, management and operations, sustainment, and security of its customers’ IT infrastructure, as well as cloud migration, managed services, infrastructure modernization, and enterprise IT-as-a-service solutions. It serves the U.S. military comprising Army, Air Force, Navy, Marines, and Coast Guard; Department of Defense agencies; National Aeronautics and Space Administration; the U.S. Department of State; Department of Justice; Department of Homeland Security; and various intelligence community agencies, as well as U.S. federal civilian agencies. The company was formerly known as SAIC Gemini, Inc. and changed its name to Science Applications International Corporation in September 2013. Science Applications International Corporation was founded in 1969 and is headquartered in Reston, Virginia.
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.
Receive News & Ratings for Science Applications International Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Science Applications International and related companies with MarketBeat.com's FREE daily email newsletter.
