Amdocs vs Infosys Which Is More Profitable?

Amdocs and Infosys are two prominent names in the IT and consulting industry, with both companies providing a range of solutions and services to clients around the globe. Amdocs is known for its expertise in customer experience and billing software, while Infosys is a leading player in digital transformation and technology consulting. As investors evaluate the performance of these companies, they must consider factors such as revenue growth, market share, and potential risks in order to make informed decisions about investing in Amdocs vs Infosys stocks.

Amdocs or Infosys?

When comparing Amdocs and Infosys, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Amdocs and Infosys.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Amdocs has a dividend yield of 2.02%, while Infosys has a dividend yield of 2.66%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Amdocs reports a 5-year dividend growth of 11.71% year and a payout ratio of 41.09%. On the other hand, Infosys reports a 5-year dividend growth of -5.23% year and a payout ratio of 70.73%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Amdocs P/E ratio at 20.98 and Infosys's P/E ratio at 28.25. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Amdocs P/B ratio is 3.05 while Infosys's P/B ratio is 8.46.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Amdocs has seen a 5-year revenue growth of 0.49%, while Infosys's is 0.65%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amdocs's ROE at 14.40% and Infosys's ROE at 31.58%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $92.13 for Amdocs and $21.77 for Infosys. Over the past year, Amdocs's prices ranged from $74.41 to $94.04, with a yearly change of 26.38%. Infosys's prices fluctuated between $16.04 and $23.48, with a yearly change of 46.38%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.