DOX vs. CTSH, IT, LDOS, BAH, EPAM, CACI, TDC, HCKT, FORR, and UIS
Should you be buying Amdocs stock or one of its competitors? The main competitors of Amdocs include Cognizant Technology Solutions (CTSH), Gartner (IT), Leidos (LDOS), Booz Allen Hamilton (BAH), EPAM Systems (EPAM), CACI International (CACI), Teradata (TDC), The Hackett Group (HCKT), Forrester Research (FORR), and Unisys (UIS). These companies are all part of the "it consulting & other services" industry.
Amdocs (NASDAQ:DOX) and Cognizant Technology Solutions (NASDAQ:CTSH) are both large-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation, risk, media sentiment and community ranking.
Cognizant Technology Solutions has a net margin of 10.84% compared to Amdocs' net margin of 10.62%. Amdocs' return on equity of 17.85% beat Cognizant Technology Solutions' return on equity.
Amdocs has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500. Comparatively, Cognizant Technology Solutions has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.
92.0% of Amdocs shares are owned by institutional investors. Comparatively, 92.4% of Cognizant Technology Solutions shares are owned by institutional investors. 15.4% of Amdocs shares are owned by company insiders. Comparatively, 0.3% of Cognizant Technology Solutions shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Cognizant Technology Solutions received 559 more outperform votes than Amdocs when rated by MarketBeat users. Likewise, 74.82% of users gave Cognizant Technology Solutions an outperform vote while only 72.42% of users gave Amdocs an outperform vote.
Amdocs currently has a consensus target price of $103.80, suggesting a potential upside of 19.42%. Cognizant Technology Solutions has a consensus target price of $75.75, suggesting a potential upside of 1.58%. Given Amdocs' stronger consensus rating and higher possible upside, research analysts plainly believe Amdocs is more favorable than Cognizant Technology Solutions.
Amdocs pays an annual dividend of $1.92 per share and has a dividend yield of 2.2%. Cognizant Technology Solutions pays an annual dividend of $1.20 per share and has a dividend yield of 1.6%. Amdocs pays out 43.1% of its earnings in the form of a dividend. Cognizant Technology Solutions pays out 28.8% 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 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, Cognizant Technology Solutions had 12 more articles in the media than Amdocs. MarketBeat recorded 16 mentions for Cognizant Technology Solutions and 4 mentions for Amdocs. Cognizant Technology Solutions' average media sentiment score of 0.93 beat Amdocs' score of 0.41 indicating that Cognizant Technology Solutions is being referred to more favorably in the news media.
Summary
Cognizant Technology Solutions beats Amdocs on 11 of the 20 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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