Amdocs vs Zensar Technologies Which Offers More Value?

Amdocs and Zensar Technologies are two prominent players in the global technology and services industry. Amdocs is a leading provider of software and services for communications, media, and entertainment industries, while Zensar Technologies specializes in digital solutions and technology services for various sectors. Both companies have experienced growth and success in their respective markets, but there are key differences in their financial performance and market positioning. In this analysis, we will compare the stocks of Amdocs and Zensar Technologies to determine which may be the better investment option.

Amdocs or Zensar Technologies?

When comparing Amdocs and Zensar Technologies, 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 Zensar Technologies.

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 Zensar Technologies has a dividend yield of 1.2%. 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, Zensar Technologies reports a 5-year dividend growth of -36.12% year and a payout ratio of 0.00%.

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 Zensar Technologies's P/E ratio at 26.07. 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 Zensar Technologies's P/B ratio is 4.56.

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 Zensar Technologies's is 0.22%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amdocs's ROE at 14.40% and Zensar Technologies's ROE at 18.42%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $92.13 for Amdocs and ₹718.15 for Zensar Technologies. Over the past year, Amdocs's prices ranged from $74.41 to $94.04, with a yearly change of 26.38%. Zensar Technologies's prices fluctuated between ₹484.25 and ₹839.50, with a yearly change of 73.36%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.