NCR (NYSE: NCR) and Amdocs (NASDAQ:DOX) are both mid-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, institutional ownership and profitability.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for NCR and Amdocs, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NCR 0 2 6 0 2.75
Amdocs 0 4 2 0 2.33

NCR presently has a consensus price target of $47.57, suggesting a potential upside of 44.42%. Amdocs has a consensus price target of $70.17, suggesting a potential upside of 6.99%. Given NCR’s stronger consensus rating and higher probable upside, analysts clearly believe NCR is more favorable than Amdocs.

Valuation and Earnings

This table compares NCR and Amdocs’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NCR $6.54 billion 0.61 $270.00 million $1.65 19.96
Amdocs $3.87 billion 2.46 $436.82 million $2.96 22.16

Amdocs has lower revenue, but higher earnings than NCR. NCR is trading at a lower price-to-earnings ratio than Amdocs, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

90.6% of NCR shares are owned by institutional investors. Comparatively, 93.3% of Amdocs shares are owned by institutional investors. 1.0% of NCR shares are owned by company insiders. Comparatively, 15.4% of Amdocs shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

NCR has a beta of 1.82, indicating that its stock price is 82% more volatile than the S&P 500. Comparatively, Amdocs has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500.

Dividends

Amdocs pays an annual dividend of $0.88 per share and has a dividend yield of 1.3%. NCR does not pay a dividend. Amdocs pays out 29.7% of its earnings in the form of a dividend.

Profitability

This table compares NCR and Amdocs’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NCR 5.11% 84.72% 7.25%
Amdocs 11.30% 14.77% 9.81%

Summary

Amdocs beats NCR on 9 of the 16 factors compared between the two stocks.

NCR Company Profile

NCR Corporation is a provider of Omni-channel technology solutions that enable businesses connect, interact and transact with their customers. The Company operates through three segments: Software, Services and Hardware. It sells a portfolio of hardware, software and services that combine to provide businesses with solutions. Its portfolio of self-service and assisted-service solutions are designed to allow businesses in the financial services, retail, hospitality, travel and telecommunications and technology industries to deliver an experience to consumers across physical and digital commerce channels. Its offerings include automated teller machines, point of sale terminals and devices, self-service kiosks, Omni-channel platform software and other software applications, and a suite of consulting, implementation, maintenance and managed services. It provides solutions for a range of industries, such as financial services, hospitality, travel and telecommunications, and technology.

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.

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