NCI (NCIT) and Amdocs Limited (NASDAQ:DOX) Critical Contrast
NCI (NASDAQ: NCIT) and Amdocs Limited (NASDAQ:DOX) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, valuation, earnings, analyst recommendations, institutional ownership and profitability.
This is a breakdown of current ratings and recommmendations for NCI and Amdocs Limited, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
NCI presently has a consensus target price of $18.33, indicating a potential downside of 8.33%. Amdocs Limited has a consensus target price of $66.57, indicating a potential upside of 4.61%. Given Amdocs Limited’s stronger consensus rating and higher probable upside, analysts plainly believe Amdocs Limited is more favorable than NCI.
Institutional and Insider Ownership
39.1% of NCI shares are held by institutional investors. Comparatively, 90.0% of Amdocs Limited shares are held by institutional investors. 45.4% of NCI shares are held by company insiders. Comparatively, 15.4% of Amdocs Limited shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares NCI and Amdocs Limited’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|NCI||$325.44 million||0.83||$29.65 million||$0.49||40.82|
|Amdocs Limited||$3.83 billion||2.42||$712.62 million||$2.87||22.17|
Amdocs Limited has higher revenue and earnings than NCI. Amdocs Limited is trading at a lower price-to-earnings ratio than NCI, indicating that it is currently the more affordable of the two stocks.
This table compares NCI and Amdocs Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Amdocs Limited pays an annual dividend of $0.88 per share and has a dividend yield of 1.4%. NCI does not pay a dividend. Amdocs Limited pays out 30.7% of its earnings in the form of a dividend.
Volatility and Risk
NCI has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Amdocs Limited has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500.
Amdocs Limited beats NCI on 12 of the 16 factors compared between the two stocks.
NCI Company Profile
NCI, Inc. is a provider of enterprise services and solutions to defense, intelligence, healthcare and civilian government agencies. The Company provides information technology (IT), and professional services and solutions by leveraging its core service offerings, which include cloud computing and IT infrastructure optimization; cybersecurity and information assurance; engineering and logistics support; enterprise information management and advanced analytics; health IT and medical support; IT service management; modeling, simulation, and training, and agile development and integration. The Company helps its clients to navigate the range of cloud, Everything-as-a-Service (EaaS), capacity services and virtualization options available. The Company provides its customers the full lifecycle of cybersecurity services, including policy and planning, compliance, identity and access management, training, education, awareness and enterprise security operations.
Amdocs Limited Company Profile
Amdocs Limited is a provider of software and services for communications, entertainment and media industry service providers. The Company develops, implements and manages software and services associated with business support systems (BSS), operational support systems (OSS) and network operations to enable service providers to introduce new products and services, process orders, monetize data, support new business models and enhance their understanding of their customers. The Company’s segment provides software products and services. Its services include strategic business consulting, systems integration and transformation, managed services and testing. Its managed services provide multi-year, flexible and tailored business processes and applications services, including application development and maintenance, information technology (IT) and infrastructure services, testing and professional services.
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