Critical Survey: Amdocs (NASDAQ:DOX) and Serve Robotics (NASDAQ:SERV)

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

Valuation & Earnings

This table compares Amdocs and Serve Robotics”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	1.57	$564.70 million	$5.17	12.77
Serve Robotics	$2.65 million	239.07	-$101.36 million	($1.59)	-5.26

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Amdocs and Serve Robotics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amdocs	0	2	3	0	2.60
Serve Robotics	1	0	5	2	3.00

Amdocs currently has a consensus price target of $92.33, suggesting a potential upside of 39.90%. Serve Robotics has a consensus price target of $18.60, suggesting a potential upside of 122.22%. Given Serve Robotics’ stronger consensus rating and higher probable upside, analysts clearly believe Serve Robotics is more favorable than Amdocs.

Volatility and Risk

Amdocs has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500. Comparatively, Serve Robotics has a beta of 2.26, indicating that its stock price is 126% more volatile than the S&P 500.

Institutional and Insider Ownership

92.0% of Amdocs shares are owned by institutional investors. 15.4% of Amdocs shares are owned by insiders. Comparatively, 5.5% of Serve Robotics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Amdocs	12.47%	20.19%	11.23%
Serve Robotics	-3,821.98%	-38.54%	-36.93%

Summary

Amdocs beats Serve Robotics on 9 of the 15 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 Serve Robotics

Serve Robotics Inc. designs, develops, and operates low-emission robots that serve people in public spaces with food delivery in the United States. It builds self-driving delivery robots. The company was formerly known as Patricia Acquisition Corp. and changed its name to Serve Robotics Inc. in July 2023. Serve Robotics Inc. was founded in 2017 and is based in Redwood City, California.