Contrasting Amdocs (DOX) and Its Competitors

Amdocs (NASDAQ:DOX) is one of 56 publicly-traded companies in the “IT Services” industry, but how does it weigh in compared to its rivals? We will compare Amdocs to related businesses based on the strength of its valuation, profitability, earnings, dividends, risk, analyst recommendations and institutional ownership.

Volatility and Risk

Amdocs has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500. Comparatively, Amdocs’ rivals have a beta of -8.38, suggesting that their average share price is 938% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Amdocs and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amdocs	0	2	3	0	2.60
Amdocs Competitors	541	2913	5692	229	2.60

Amdocs presently has a consensus price target of $92.33, indicating a potential upside of 42.42%. As a group, “IT Services” companies have a potential upside of 50.17%. Given Amdocs’ rivals higher probable upside, analysts plainly believe Amdocs has less favorable growth aspects than its rivals.

Valuation and Earnings

This table compares Amdocs and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Amdocs	$4.53 billion	$564.70 million	12.54
Amdocs Competitors	$5.74 billion	$429.15 million	101.70

Amdocs’ rivals have higher revenue, but lower earnings than Amdocs. Amdocs is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Amdocs and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amdocs	12.47%	20.19%	11.23%
Amdocs Competitors	-127.05%	-8.38%	3.34%

Dividends

Amdocs pays an annual dividend of $2.11 per share and has a dividend yield of 3.3%. Amdocs pays out 40.8% of its earnings in the form of a dividend. As a group, “IT Services” companies pay a dividend yield of 1.6% and pay out 31.1% of their earnings in the form of a dividend. Amdocs has increased its dividend for 14 consecutive years.

Insider and Institutional Ownership

92.0% of Amdocs shares are held by institutional investors. Comparatively, 62.6% of shares of all “IT Services” companies are held by institutional investors. 15.4% of Amdocs shares are held by company insiders. Comparatively, 11.1% of shares of all “IT Services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Amdocs beats its rivals on 9 of the 15 factors compared.

Amdocs Company Profile

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.