Fujitsu (OTCMKTS:FJTSY) versus Amdocs (NASDAQ:DOX) Head to Head Analysis

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

Insider & Institutional Ownership

92.0% of Amdocs shares are held by institutional investors. Comparatively, 0.1% of Fujitsu shares are held by institutional investors. 15.4% of Amdocs shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amdocs	$4.58 billion	1.57	$564.70 million	$5.17	12.85
Fujitsu	$23.31 billion	1.55	$1.45 billion	$0.45	45.78

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

Dividends

Amdocs pays an annual dividend of $2.27 per share and has a dividend yield of 3.4%. Fujitsu pays an annual dividend of $0.12 per share and has a dividend yield of 0.6%. Amdocs pays out 43.9% of its earnings in the form of a dividend. Fujitsu pays out 26.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Amdocs has raised its dividend for 14 consecutive years. Amdocs is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for Amdocs and Fujitsu, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amdocs	0	2	3	0	2.60
Fujitsu	0	2	0	0	2.00

Amdocs presently has a consensus price target of $92.33, indicating a potential upside of 38.99%. Given Amdocs’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Amdocs is more favorable than Fujitsu.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Amdocs	12.47%	20.19%	11.23%
Fujitsu	N/A	N/A	N/A

Volatility and Risk

Amdocs has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500. Comparatively, Fujitsu has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.

Summary

Amdocs beats Fujitsu on 12 of the 17 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 Fujitsu

Fujitsu Limited operates as an information and communication technology company in Japan and internationally. The company operates through three segments: Technology Solutions, Ubiquitous Solutions, and Device Solutions. The company offers multi cloud and hybrid IT services; assessment and consultative services; SAP landscape transformation services; new workplace; datacentre products comprising integrated systems, storage solutions, servers, network switches, and infrastructure management; workplace products including notebooks, tablet PC’s, desktop PC’s, workstations, thin clients, displays, and peripheral devices; consumption based IT services; installation and implementation services; and hardware, software, and infrastructure support services, as well as electronic devices, air conditioning products, and network solutions. It also provides cyber security solutions, including cyber security consulting, managed security servies, and security operation and advanced threat centers; internet of things, artificial intelligence platform and solutions; and software products comprising FUJITSU Software Infrastructure Manager and FUJITSU Software ServerView Suite. Further, the company offers electronic components, such as semiconductor packages and batteries. It serves automotive, manufacturing, retail, financial services, transport, telecommunications, healthcare, and energy and utilities industries; the public sectors; and services providers. The company was founded in 1923 and is headquartered in Tokyo, Japan.