TaskUs (NASDAQ:TASK) and Amdocs (NASDAQ:DOX) Head to Head Contrast

Amdocs (NASDAQ:DOX) and TaskUs (NASDAQ:TASK) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Risk & Volatility

Amdocs has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500. Comparatively, TaskUs has a beta of 2.15, indicating that its stock price is 115% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Amdocs	11.94%	19.66%	10.95%
TaskUs	5.70%	20.37%	10.72%

Institutional & Insider Ownership

92.0% of Amdocs shares are owned by institutional investors. Comparatively, 44.6% of TaskUs shares are owned by institutional investors. 15.4% of Amdocs shares are owned by insiders. Comparatively, 30.6% of TaskUs 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.

Earnings & Valuation

This table compares Amdocs and TaskUs”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amdocs	$5.00 billion	1.88	$493.20 million	$4.93	16.92
TaskUs	$1.10 billion	1.15	$45.87 million	$0.69	20.43

Amdocs has higher revenue and earnings than TaskUs. Amdocs is trading at a lower price-to-earnings ratio than TaskUs, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Amdocs and TaskUs, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amdocs	0	1	3	0	2.75
TaskUs	0	4	2	2	2.75

Amdocs presently has a consensus target price of $108.00, indicating a potential upside of 29.47%. TaskUs has a consensus target price of $17.25, indicating a potential upside of 22.34%. Given Amdocs’ higher possible upside, equities research analysts plainly believe Amdocs is more favorable than TaskUs.

Summary

Amdocs beats TaskUs on 9 of the 14 factors compared between the two stocks.

About Amdocs

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.

About TaskUs

TaskUs, Inc. provides digital outsourcing services for companies in Philippines, the United States, India, and internationally. It offers digital customer experience that consists of omni-channel customer care services primarily delivered through non-voice digital channels; and other solutions, including experience and customer care services for new product or market launches, and customer acquisition solutions. The company also provides trust and safety solutions, such as review and disposition of user and advertiser generated visual, text, and audio content, which include removal or labeling of policy violating, and offensive or misleading content, as well as risk management, compliance, identity management, and fraud services; and artificial intelligence (AI) solutions that consist of data labeling, annotation, context relevance, and transcription services for training and tuning machine learning algorithms that enables to develop AI systems. It serves clients in various industry segments comprising e-commerce, FinTech, food delivery and ride sharing, gaming, technology, HealthTech, social media, and streaming media. The company was formerly known as TU TopCo, Inc. and changed its name to TaskUs, Inc. in December 2020. TaskUs, Inc. was founded in 2008 and is headquartered in New Braunfels, Texas.