Head-To-Head Review: Amdocs Limited (DOX) and Vmware (VMW)
Amdocs Limited (NASDAQ: DOX) and Vmware (NYSE:VMW) are both mid-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, analyst recommendations, profitability, institutional ownership, dividends and valuation.
Volatility & Risk
Amdocs Limited has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500. Comparatively, Vmware has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500.
This table compares Amdocs Limited and Vmware’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Amdocs Limited||$3.83 billion||2.47||$719.32 million||$2.87||22.63|
|Vmware||$7.09 billion||6.92||$1.85 billion||$3.16||37.95|
Vmware has higher revenue and earnings than Amdocs Limited. Amdocs Limited is trading at a lower price-to-earnings ratio than Vmware, indicating that it is currently the more affordable of the two stocks.
This table compares Amdocs Limited and Vmware’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
91.1% of Amdocs Limited shares are owned by institutional investors. Comparatively, 22.3% of Vmware shares are owned by institutional investors. 15.4% of Amdocs Limited shares are owned by insiders. Comparatively, 0.5% of Vmware shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Amdocs Limited pays an annual dividend of $0.88 per share and has a dividend yield of 1.4%. Vmware does not pay a dividend. Amdocs Limited pays out 30.7% of its earnings in the form of a dividend.
This is a breakdown of recent ratings and price targets for Amdocs Limited and Vmware, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Amdocs Limited presently has a consensus target price of $69.14, indicating a potential upside of 6.44%. Vmware has a consensus target price of $113.00, indicating a potential downside of 5.78%. Given Amdocs Limited’s higher probable upside, equities research analysts plainly believe Amdocs Limited is more favorable than Vmware.
Vmware beats Amdocs Limited on 11 of the 16 factors compared between the two stocks.
About Amdocs Limited
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.
VMware, Inc. is an information technology (IT) company. The Company is engaged in development and application of virtualization technologies with x86 server-based computing, separating application software from the underlying hardware. The Company offers various products, which allow organizations to manage IT resources across private clouds and multi-cloud, multi-device environments by leveraging synergies across three product categories: Software-Defined Data Center (SDDC), Hybrid Cloud Computing and End-User Computing (EUC). The SDDC is designed to transform and modernize the data center into an on-demand service that addresses application requirements by abstracting, pooling and automating the services that are required from the underlying hardware. The Company provides many storage and availability products to offer data storage and protection options to all applications running on the vSphere platform.
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