Computer Programs and Systems (NASDAQ: CPSI) and Amdocs (NASDAQ:DOX) are both medical companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.
This table compares Computer Programs and Systems and Amdocs’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Computer Programs and Systems||-6.29%||12.06%||5.47%|
This table compares Computer Programs and Systems and Amdocs’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Computer Programs and Systems||$276.93 million||1.50||-$17.10 million||$1.33||22.22|
|Amdocs||$3.87 billion||2.46||$436.82 million||$3.55||18.67|
Amdocs has higher revenue and earnings than Computer Programs and Systems. Amdocs is trading at a lower price-to-earnings ratio than Computer Programs and Systems, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
90.6% of Computer Programs and Systems shares are owned by institutional investors. Comparatively, 93.5% of Amdocs shares are owned by institutional investors. 4.8% of Computer Programs and Systems shares are owned by insiders. Comparatively, 15.4% of Amdocs shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Computer Programs and Systems pays an annual dividend of $0.40 per share and has a dividend yield of 1.4%. Amdocs pays an annual dividend of $1.00 per share and has a dividend yield of 1.5%. Computer Programs and Systems pays out 30.1% of its earnings in the form of a dividend. Amdocs pays out 28.2% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a breakdown of current ratings and recommmendations for Computer Programs and Systems and Amdocs, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Computer Programs and Systems||1||4||1||0||2.00|
Computer Programs and Systems currently has a consensus price target of $30.60, suggesting a potential upside of 3.55%. Amdocs has a consensus price target of $69.03, suggesting a potential upside of 4.15%. Given Amdocs’ stronger consensus rating and higher probable upside, analysts plainly believe Amdocs is more favorable than Computer Programs and Systems.
Volatility & Risk
Computer Programs and Systems has a beta of 0.07, suggesting that its stock price is 93% less volatile than the S&P 500. Comparatively, Amdocs has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500.
Amdocs beats Computer Programs and Systems on 15 of the 16 factors compared between the two stocks.
Computer Programs and Systems Company Profile
Computer Programs and Systems, Inc. provides healthcare information technology solutions and services in the United States and the Caribbean nation of St. Maarten. Its software systems include patient management software that enables a hospital to identify a patient at various points in the healthcare delivery system, as well as helps to collect and maintain patient information throughout the process of patient care; and financial accounting software, which offers business office applications to track and coordinate information needed for managerial decision-making. The company also provides clinical software that automates record keeping and reporting for various clinical functions; patient care applications; and enterprise applications that support its products for use in various areas of the hospital. In addition, it offers Healthland Centriq, a Web-based electronic health record platform that centralizes data from various care areas; and Healthland Classic that offers a suite of integrated applications for managing operations, resources, and people, as well as for ambulatory information management solutions. Further, the company provides software solutions that promote data-driven clinical and financial outcomes for customers in the post-acute care industry; software application support, hardware maintenance, and education and related services; business management, consulting, and managed information technology services for community healthcare enterprises. Additionally, it provides Software as a Service based healthcare revenue cycle management solutions; system implementation and training services; and forms and office supplies. It serves community hospitals and physician clinics, skilled nursing and assisted living facilities, and small specialty hospitals. Computer Programs and Systems, Inc. was founded in 1979 and is based in Mobile, Alabama.
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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