Dynatrace (NYSE:DT) versus Amdocs (NASDAQ:DOX) Financial Contrast

Amdocs (NASDAQ:DOX) and Dynatrace (NYSE:DT) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Amdocs	11.81%	19.77%	10.87%
Dynatrace	8.06%	10.37%	6.74%

Volatility & Risk

Amdocs has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500. Comparatively, Dynatrace has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500.

Earnings and Valuation

This table compares Amdocs and Dynatrace”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amdocs	$4.53 billion	1.25	$564.70 million	$5.00	10.53
Dynatrace	$2.02 billion	6.39	$162.67 million	$0.54	82.34

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

Institutional and Insider Ownership

92.0% of Amdocs shares are owned by institutional investors. Comparatively, 94.3% of Dynatrace shares are owned by institutional investors. 15.4% of Amdocs shares are owned by insiders. Comparatively, 0.6% of Dynatrace shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amdocs	1	3	3	0	2.29
Dynatrace	0	7	22	1	2.80

Amdocs presently has a consensus target price of $86.67, suggesting a potential upside of 64.67%. Dynatrace has a consensus target price of $49.27, suggesting a potential upside of 10.80%. Given Amdocs’ higher probable upside, equities research analysts clearly believe Amdocs is more favorable than Dynatrace.

Summary

Amdocs beats Dynatrace on 8 of the 15 factors compared between the two stocks.

About Amdocs

Amdocs Limited, through its subsidiaries, provides software and services worldwide. It designs, develops, operates, implements, supports, and markets open and modular cloud portfolio. The company provides CES23, a 5G and cloud-native microservices-based market-leading customer experience suite, that enables service providers to build, deliver, and monetize advanced services; Amdocs Subscription Marketplace, a software-as-a-service-based platform that includes an expansive network of pre-integrated digital services, such as media, gaming, eLearning, sports, and retail to security and business services; the monetization suite for charging, billing, policy, and revenue management; Intelligent networking suite with a set of modular, flexible, and open service lifecycle management capabilities for network automation journeys; amAIz, a telco GenAI framework; Amdocs Digital Brands Suite, a pre-integrated digital business suite; and Amdocs eSIM Cloud for service providers. It also offers AI-powered, cloud-native, and home operating systems; data intelligence solutions and applications; end-to-end application development and maintenance services; and ongoing maintenance services. In addition, the company provides a line of services designed for various stages of a service provider’s lifecycle includes consulting, delivery, quality engineering, operations, systems integration, network services, experience-driven services, data, cloud, and content services; managed services comprising application development, modernization and maintenance, IT and infrastructure services, testing and professional services that are designed to assist customers in the selection, implementation, operation, management, and maintenance of IT systems. It serves to the communications, entertainment, and media industry service providers, as well as mobile virtual network operators. Amdocs Limited was founded in 1988 and is headquartered in Saint Louis, Missouri.

About Dynatrace

Dynatrace, Inc. provides a security platform for multicloud environments in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company operates Dynatrace, a security platform, which provides application and microservices monitoring, runtime application security, infrastructure monitoring, log management and analytics, digital experience monitoring, digital business analytics, and cloud automation. Its platform allows its customers to modernize and automate IT operations, delivers software, and enhance user experiences. In addition, the company offers implementation, consulting, and training services. It markets its products through a combination of direct sales team and a network of partners, including resellers, system integrators, and managed service providers. It serves customers in various industries comprising banking, financial services, government, insurance, retail and wholesale, transportation, and software. Dynatrace, Inc. was founded in 2005 and is headquartered in Waltham, Massachusetts.