Indra Sistemas (OTCMKTS:ISMAY – Get Free Report) and Amdocs (NASDAQ:DOX – Get Free Report) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.
Profitability
This table compares Indra Sistemas and Amdocs’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Indra Sistemas | 7.12% | 22.61% | 4.57% |
| Amdocs | 9.75% | 20.28% | 10.94% |
Insider & Institutional Ownership
92.0% of Amdocs shares are owned by institutional investors. 0.3% of Indra Sistemas shares are owned by company insiders. Comparatively, 15.4% of Amdocs shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Risk & Volatility
Dividends
Indra Sistemas pays an annual dividend of $0.10 per share and has a dividend yield of 0.3%. Amdocs pays an annual dividend of $2.27 per share and has a dividend yield of 3.9%. Indra Sistemas pays out 6.8% of its earnings in the form of a dividend. Amdocs pays out 54.0% 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. Amdocs has increased its dividend for 14 consecutive years. Amdocs is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Recommendations
This is a summary of recent recommendations for Indra Sistemas and Amdocs, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Indra Sistemas | 0 | 1 | 1 | 0 | 2.50 |
| Amdocs | 1 | 3 | 3 | 0 | 2.29 |
Amdocs has a consensus target price of $86.67, suggesting a potential upside of 49.81%. Given Amdocs’ higher probable upside, analysts clearly believe Amdocs is more favorable than Indra Sistemas.
Valuation and Earnings
This table compares Indra Sistemas and Amdocs”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Indra Sistemas | $6.17 billion | 1.98 | $493.10 million | $1.47 | 23.57 |
| Amdocs | $4.65 billion | 1.34 | $564.70 million | $4.20 | 13.77 |
Amdocs has lower revenue, but higher earnings than Indra Sistemas. Amdocs is trading at a lower price-to-earnings ratio than Indra Sistemas, indicating that it is currently the more affordable of the two stocks.
Summary
Amdocs beats Indra Sistemas on 10 of the 17 factors compared between the two stocks.
About Indra Sistemas
Indra Sistemas, S.A. operates as a technology and consulting company for aerospace, defense, and mobility business worldwide. The company operates through four segments: Defence, Air Traffic, Mobility, and Minsait. It offers Mova Consulting for planing and designing transport infrastructures; Mova Collect for ticketing, tolling, and back office applications; Mova Traffic for building traffic management and control solutions; Mova Protect for protection of businesses and people; Mova Experience; Mova Comms for connecting the transportation ecosystem with personalized communication solutions; Mova Care that provides infrastructure operation and maintenance, technology operation and maintenance, and transportation services operation and maintenance; and In-Mova Space, a technological mobility and infrastructure management platform. The company also provides Indra Air Automation; Indra Air Communication; Indra Air Navigation; Indra Air Surveillance; Indra Air Drones; Indra Air Information; and Indra Air Services for air traffic applications. In addition, the company offers defence and security solutions, including Platforms, defence systems, security, cyberdefence, space technologies applied to military operations, military and civilian training solutions, and logistics and maintenance services; and other technological solutions for public administration, industry and consumption, financial services, energy, and telco and media sectors. Indra Sistemas, S.A. was founded in 1921 and is based in Alcobendas, Spain.
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.
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