DOX vs. CTSH, AZPN, HCP, ZS, WIT, ZG, SNX, TOST, CYBR, and LSCC
Should you be buying Amdocs stock or one of its competitors? The main competitors of Amdocs include Cognizant Technology Solutions (CTSH), Aspen Technology (AZPN), HashiCorp (HCP), Zscaler (ZS), Wipro (WIT), Zillow Group (ZG), TD SYNNEX (SNX), Toast (TOST), CyberArk Software (CYBR), and Lattice Semiconductor (LSCC). These companies are all part of the "computer and technology" sector.
Amdocs (NASDAQ:DOX) and Cognizant Technology Solutions (NASDAQ:CTSH) are both large-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, valuation, community ranking, profitability, institutional ownership, media sentiment, analyst recommendations, risk and dividends.
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.
Amdocs has a net margin of 11.30% compared to Cognizant Technology Solutions' net margin of 10.98%. Cognizant Technology Solutions' return on equity of 17.83% beat Amdocs' return on equity.
Amdocs pays an annual dividend of $1.92 per share and has a dividend yield of 2.3%. Cognizant Technology Solutions pays an annual dividend of $1.20 per share and has a dividend yield of 1.8%. Amdocs pays out 41.1% of its earnings in the form of a dividend. Cognizant Technology Solutions pays out 28.6% 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.
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 insiders. Comparatively, 0.3% of Cognizant Technology Solutions shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Amdocs currently has a consensus target price of $108.60, suggesting a potential upside of 27.69%. Cognizant Technology Solutions has a consensus target price of $75.65, suggesting a potential upside of 12.69%. Given Amdocs' stronger consensus rating and higher probable upside, equities analysts clearly believe Amdocs is more favorable than Cognizant Technology Solutions.
In the previous week, Cognizant Technology Solutions had 6 more articles in the media than Amdocs. MarketBeat recorded 12 mentions for Cognizant Technology Solutions and 6 mentions for Amdocs. Amdocs' average media sentiment score of 1.29 beat Cognizant Technology Solutions' score of 0.97 indicating that Amdocs is being referred to more favorably in the media.
Amdocs has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500. Comparatively, Cognizant Technology Solutions has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500.
Cognizant Technology Solutions received 558 more outperform votes than Amdocs when rated by MarketBeat users. Likewise, 75.25% of users gave Cognizant Technology Solutions an outperform vote while only 72.47% of users gave Amdocs an outperform vote.
Summary
Cognizant Technology Solutions beats Amdocs on 10 of the 19 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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