Endava (NYSE:DAVA – Get Free Report) and Amdocs (NASDAQ:DOX – Get Free Report) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.
Earnings & Valuation
This table compares Endava and Amdocs”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Endava | $999.23 million | 0.09 | $27.45 million | ($10.51) | -0.15 |
| Amdocs | $4.70 billion | 1.00 | $497.42 million | $4.67 | 9.34 |
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 Endava and Amdocs’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Endava | -57.01% | 2.48% | 1.40% |
| Amdocs | 10.59% | 20.81% | 11.05% |
Insider and Institutional Ownership
62.2% of Endava shares are owned by institutional investors. Comparatively, 92.0% of Amdocs shares are owned by institutional investors. 18.8% of Endava shares are owned by company insiders. Comparatively, 15.4% of Amdocs shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Risk and Volatility
Endava has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, Amdocs has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations for Endava and Amdocs, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Endava | 3 | 5 | 0 | 0 | 1.62 |
| Amdocs | 2 | 4 | 2 | 0 | 2.00 |
Endava currently has a consensus target price of $5.42, suggesting a potential upside of 242.83%. Amdocs has a consensus target price of $69.00, suggesting a potential upside of 58.13%. Given Endava’s higher possible upside, equities analysts plainly believe Endava is more favorable than Amdocs.
Summary
Amdocs beats Endava on 11 of the 14 factors compared between the two stocks.
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.
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.
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