Amdocs (NASDAQ:DOX – Get Free Report) and Endava (NYSE:DAVA – Get Free Report) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.
Risk & Volatility
Amdocs has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500. Comparatively, Endava has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.
Valuation and Earnings
This table compares Amdocs and Endava”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Amdocs | $4.70 billion | 1.00 | $497.42 million | $4.67 | 9.34 |
| Endava | $999.23 million | 0.09 | $27.45 million | ($10.51) | -0.15 |
Amdocs has higher revenue and earnings than Endava. Endava 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 Endava’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% |
| Endava | -57.01% | 2.48% | 1.40% |
Institutional & Insider Ownership
92.0% of Amdocs shares are owned by institutional investors. Comparatively, 62.2% of Endava shares are owned by institutional investors. 15.4% of Amdocs shares are owned by insiders. Comparatively, 18.8% of Endava shares are owned by 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 Recommendations
This is a summary of current ratings for Amdocs and Endava, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Amdocs | 2 | 4 | 2 | 0 | 2.00 |
| Endava | 3 | 5 | 0 | 0 | 1.62 |
Amdocs currently has a consensus target price of $69.00, suggesting a potential upside of 58.13%. Endava has a consensus target price of $5.42, suggesting a potential upside of 242.83%. Given Endava’s higher probable upside, analysts clearly believe Endava is more favorable than Amdocs.
Summary
Amdocs beats Endava 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 Endava
Endava plc (NYSE: DAVA) is a technology services company that helps organizations design, develop and modernize digital products, platforms and business processes. Its services include technology consulting, software engineering, cloud and infrastructure solutions, data and analytics, artificial intelligence, digital product development, and quality assurance and testing. The company works with clients across industries including payments, banking and capital markets, insurance, telecommunications, media and technology, healthcare, mobility, and consumer products.
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