Amdocs (DOX) & Luxoft (LXFT) Financial Survey

Amdocs (NASDAQ: DOX) and Luxoft (NYSE:LXFT) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, earnings, analyst recommendations, profitability and risk.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Amdocs $3.87 billion 2.47 $436.82 million $3.55 18.77
Luxoft $785.56 million 1.70 $62.63 million $2.14 18.46

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

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amdocs 0 3 3 0 2.50
Luxoft 0 5 5 0 2.50

Amdocs presently has a consensus target price of $69.03, suggesting a potential upside of 3.61%. Luxoft has a consensus target price of $57.70, suggesting a potential upside of 46.08%. Given Luxoft’s higher probable upside, analysts clearly believe Luxoft is more favorable than Amdocs.

Profitability

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

Net Margins Return on Equity Return on Assets
Amdocs 11.72% 15.13% 10.14%
Luxoft 6.72% 17.07% 12.65%

Institutional & Insider Ownership

93.8% of Amdocs shares are held by institutional investors. Comparatively, 54.0% of Luxoft shares are held by institutional investors. 15.4% of Amdocs shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Amdocs has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500. Comparatively, Luxoft has a beta of 1.64, suggesting that its share price is 64% more volatile than the S&P 500.

Dividends

Amdocs pays an annual dividend of $1.00 per share and has a dividend yield of 1.5%. Luxoft does not pay a dividend. Amdocs pays out 28.2% of its earnings in the form of a dividend.

Summary

Amdocs beats Luxoft on 9 of the 15 factors compared between the two stocks.

Amdocs Company Profile

Amdocs Limited, through its subsidiaries, provides software and services solutions to the communications, entertainment, pay TV, and media industry service providers worldwide. The company offers customer experience and monetization solutions that allow its customers to contextual and personalize interactions. It also provides operational support systems for fixed line, broadband, wireless, and cable TV networks; and network optimization suite to plan, build, launch, manage, and optimize mobile networks. In addition, the company offers network functions virtualization standards-based software solutions to virtualize network services; intelligence and real-time data products; and enterprise and B2B service to small and medium-sized business and enterprise customers. Further, it provides Internet of things monetization and connected home platforms to support connected devices, a cloud-based environment to offer integrated home services, and a solution that allows enterprises to purchase connectivity from service providers in a wholesale mode; and over-the-top and entertainment products. Additionally, the company offers mobile financial services, and big data analytics products; and entertainment and media solutions that enable the management of media and advertising selling, fulfillment, operations, advertiser and consumer experience, and financial processes in digital and print media, as well as Amdocs Optima, a converged multi-tenant digital customer management and commerce platform. It also provides thought leadership and advisory, systems integration, transformation, managed, order gateway, testing, revenue guard, and network services, as well as digital business operations for order to activation. The company was founded in 1988 and is headquartered in Chesterfield, Missouri.

Luxoft Company Profile

Luxoft Holding, Inc., together with its subsidiaries, provides software development services and IT solutions to multinational corporations primarily in Europe and the United States. It offers application software development, software architecture design, performance engineering, optimization and testing, process consulting, and software quality assurance services; functional specification and mock-up, product design, engineering, automated testing, maintenance, support, and performance engineering services; and IT strategy, software engineering process, and data security consulting services. The company's products and platforms include Teora, a suite of developer tools designed to enable automotive human machine interface (HMI) developers build the logic of their user interface; Populus, a tool chain for HMI design and development, and the deployment of automotive user interfaces for distributed embedded systems; and AllView, a user-experience demonstrator that links instrument cluster, head unit, head-up display, and mobile devices. It serves financial services, automotive and transport, travel and aviation, technology, telecom, healthcare and pharmaceutical, energy, and other industries. The company was founded in 2000 and is headquartered in Zug, Switzerland.

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