Critical Contrast: Amdocs (DOX) and LivePerson (LPSN)
Amdocs (NASDAQ: DOX) and LivePerson (NASDAQ:LPSN) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, dividends, risk, analyst recommendations and earnings.
Institutional & Insider Ownership
93.3% of Amdocs shares are held by institutional investors. Comparatively, 75.9% of LivePerson shares are held by institutional investors. 15.4% of Amdocs shares are held by company insiders. Comparatively, 11.4% of LivePerson shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Amdocs and LivePerson’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Amdocs and LivePerson’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Amdocs||$3.87 billion||2.46||$436.82 million||$2.96||22.16|
|LivePerson||$222.78 million||3.29||-$25.87 million||($0.42)||-29.29|
Amdocs has higher revenue and earnings than LivePerson. LivePerson is trading at a lower price-to-earnings ratio than Amdocs, indicating that it is currently the more affordable of the two stocks.
Amdocs pays an annual dividend of $0.88 per share and has a dividend yield of 1.3%. LivePerson does not pay a dividend. Amdocs pays out 29.7% of its earnings in the form of a dividend.
Risk and Volatility
Amdocs has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500. Comparatively, LivePerson has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500.
This is a breakdown of recent ratings and recommmendations for Amdocs and LivePerson, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Amdocs presently has a consensus price target of $70.17, suggesting a potential upside of 6.99%. LivePerson has a consensus price target of $15.26, suggesting a potential upside of 24.10%. Given LivePerson’s stronger consensus rating and higher possible upside, analysts plainly believe LivePerson is more favorable than Amdocs.
Amdocs beats LivePerson on 9 of the 15 factors compared between the two stocks.
Amdocs Company Profile
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.
LivePerson Company Profile
LivePerson, Inc. (Liveperson) is a provider of mobile and online business messaging technologies that power digital communication between brands and consumers. The Company’s segments include Business and Consumer. The Business segment enables brands to leverage its cloud-based LiveEngage’s intelligence engine. The Consumer segment facilitates online transactions between independent service providers (Experts) and individual consumers (Users) seeking information and knowledge for a fee through mobile and online messaging. The Company’s platform, LiveEngage, enables businesses to create a meaningful connection with consumers by offering messaging as a preferred channel of communication. The Company’s products and services include LiveEngage, Professional Services and Consumer Offering. As a cloud computing or software-as-a-service (SaaS) provider, LivePerson provides solutions on a hosted basis. LiveEngage enables the combination of real time on-site data and off-site behavioral data.
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