DOX vs. CTSH, HCP, AZPN, PRFT, ZS, WIT, DAY, WIX, RDDT, and CDAY
Should you be buying Amdocs stock or one of its competitors? The main competitors of Amdocs include Cognizant Technology Solutions (CTSH), HashiCorp (HCP), Aspen Technology (AZPN), Perficient (PRFT), Zscaler (ZS), Wipro (WIT), Dayforce (DAY), Wix.com (WIX), Reddit (RDDT), and Ceridian HCM (CDAY). These companies are all part of the "computer and technology" sector.
Cognizant Technology Solutions (NASDAQ:CTSH) 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 earnings, risk, institutional ownership, community ranking, dividends, profitability, valuation, media sentiment and analyst recommendations.
Cognizant Technology Solutions has a net margin of 10.84% compared to Cognizant Technology Solutions' net margin of 10.62%. Cognizant Technology Solutions' return on equity of 17.85% beat Amdocs' return on equity.
Cognizant Technology Solutions has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, Amdocs has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.
92.4% of Cognizant Technology Solutions shares are owned by institutional investors. Comparatively, 92.0% of Amdocs shares are owned by institutional investors. 0.3% of Cognizant Technology Solutions 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 is poised for long-term growth.
Cognizant Technology Solutions received 559 more outperform votes than Amdocs when rated by MarketBeat users. Likewise, 75.00% of users gave Cognizant Technology Solutions an outperform vote while only 72.42% of users gave Amdocs an outperform vote.
Cognizant Technology Solutions has higher revenue and earnings than Amdocs. Cognizant Technology Solutions is trading at a lower price-to-earnings ratio than Amdocs, indicating that it is currently the more affordable of the two stocks.
In the previous week, Amdocs had 4 more articles in the media than Cognizant Technology Solutions. MarketBeat recorded 12 mentions for Amdocs and 8 mentions for Cognizant Technology Solutions. Amdocs' average media sentiment score of 1.45 beat Cognizant Technology Solutions' score of 0.96 indicating that Cognizant Technology Solutions is being referred to more favorably in the media.
Cognizant Technology Solutions presently has a consensus target price of $75.67, indicating a potential upside of 13.17%. Amdocs has a consensus target price of $104.83, indicating a potential upside of 33.05%. Given Cognizant Technology Solutions' stronger consensus rating and higher probable upside, analysts plainly believe Amdocs is more favorable than Cognizant Technology Solutions.
Cognizant Technology Solutions pays an annual dividend of $1.20 per share and has a dividend yield of 1.8%. Amdocs pays an annual dividend of $1.92 per share and has a dividend yield of 2.4%. Cognizant Technology Solutions pays out 28.8% of its earnings in the form of a dividend. Amdocs pays out 43.1% 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. Cognizant Technology Solutions has raised its dividend for 5 consecutive years and Amdocs has raised its dividend for 13 consecutive years. Amdocs is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Amdocs beats Cognizant Technology Solutions on 11 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding DOX and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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