Amdocs (NASDAQ:DOX – Get Free Report) and Dynatrace (NYSE:DT – Get Free Report) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Amdocs and Dynatrace, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Amdocs | 1 | 3 | 3 | 0 | 2.29 |
| Dynatrace | 0 | 7 | 22 | 1 | 2.80 |
Amdocs currently has a consensus price target of $86.67, suggesting a potential upside of 66.35%. Dynatrace has a consensus price target of $49.42, suggesting a potential upside of 18.59%. Given Amdocs’ higher probable upside, analysts clearly believe Amdocs is more favorable than Dynatrace.
Insider and Institutional Ownership
Volatility and Risk
Amdocs has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500. Comparatively, Dynatrace has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500.
Earnings and Valuation
This table compares Amdocs and Dynatrace”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Amdocs | $4.53 billion | 1.24 | $564.70 million | $5.00 | 10.42 |
| Dynatrace | $2.02 billion | 5.99 | $162.67 million | $0.54 | 77.18 |
Amdocs has higher revenue and earnings than Dynatrace. Amdocs is trading at a lower price-to-earnings ratio than Dynatrace, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Amdocs and Dynatrace’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Amdocs | 11.81% | 19.77% | 10.87% |
| Dynatrace | 8.06% | 10.37% | 6.74% |
Summary
Amdocs beats Dynatrace on 8 of the 15 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 Dynatrace
Dynatrace, Inc. provides a security platform for multicloud environments in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company operates Dynatrace, a security platform, which provides application and microservices monitoring, runtime application security, infrastructure monitoring, log management and analytics, digital experience monitoring, digital business analytics, and cloud automation. Its platform allows its customers to modernize and automate IT operations, delivers software, and enhance user experiences. In addition, the company offers implementation, consulting, and training services. It markets its products through a combination of direct sales team and a network of partners, including resellers, system integrators, and managed service providers. It serves customers in various industries comprising banking, financial services, government, insurance, retail and wholesale, transportation, and software. Dynatrace, Inc. was founded in 2005 and is headquartered in Waltham, Massachusetts.
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