Amdocs (NASDAQ:DOX – Get Free Report) and VNET Group (NASDAQ:VNET – Get Free Report) are both technology companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.
Risk and Volatility
Amdocs has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500. Comparatively, VNET Group has a beta of 0.35, suggesting that its share price is 65% less volatile than the S&P 500.
Valuation and Earnings
This table compares Amdocs and VNET Group”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Amdocs | $4.70 billion | 1.03 | $497.42 million | $4.67 | 9.59 |
| VNET Group | $1.42 billion | 0.57 | -$36.01 million | ($1.42) | -2.10 |
Amdocs has higher revenue and earnings than VNET Group. VNET Group is trading at a lower price-to-earnings ratio than Amdocs, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Amdocs and VNET Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Amdocs | 10.59% | 20.81% | 11.05% |
| VNET Group | -22.29% | -36.25% | -4.43% |
Institutional and Insider Ownership
92.0% of Amdocs shares are owned by institutional investors. Comparatively, 72.8% of VNET Group shares are owned by institutional investors. 15.4% of Amdocs shares are owned by company insiders. Comparatively, 12.1% of VNET Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Amdocs and VNET Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Amdocs | 2 | 3 | 2 | 0 | 2.00 |
| VNET Group | 1 | 1 | 5 | 0 | 2.57 |
Amdocs presently has a consensus price target of $69.00, suggesting a potential upside of 54.05%. VNET Group has a consensus price target of $14.88, suggesting a potential upside of 399.26%. Given VNET Group’s stronger consensus rating and higher possible upside, analysts clearly believe VNET Group is more favorable than Amdocs.
Summary
Amdocs beats VNET Group on 11 of the 14 factors compared between the two stocks.
About Amdocs
Amdocs provides software and services to communications and media companies. Its offerings include business and operational support systems for billing, customer management, service delivery and network operations, as well as cloud and digital solutions that help clients modernize their businesses and improve customer experiences. Founded in 1982, Amdocs serves communications and media providers in markets around the world. The company is headquartered in the St. Louis, Missouri, area and is led by President and Chief Executive Officer Shuky Sheffer.
About VNET Group
VNET Group, Inc., formerly known as 21Vianet Group, is a Chinese provider of carrier-neutral data center and information technology services. The company operates data centers that support businesses’ computing, storage and connectivity needs. Its services include data center hosting and colocation, managed network services, cloud services and related IT solutions. VNET also provides connectivity between data centers, customers and internet service providers. The company serves enterprises and other organizations in China, with facilities in major markets across the country.
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