Atos vs Amdocs Which Is a Smarter Choice?

Atos and Amdocs are both leading technology companies in the information technology and services sector, but they offer different products and services to their clients. Atos focuses on providing digital transformation solutions and IT consulting services, while Amdocs specializes in software and services for the communications industry. Both stocks have performed well in recent years, with Atos seeing steady growth and Amdocs experiencing volatility due to market shifts. Investors should carefully consider their investment goals and risk tolerance when choosing between these two stocks.

Atos or Amdocs?

When comparing Atos and Amdocs, 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 Atos and Amdocs.

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. Atos has a dividend yield of 5.05%, while Amdocs has a dividend yield of 2.15%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Atos reports a 5-year dividend growth of 0.00% year and a payout ratio of -0.33%. On the other hand, Amdocs reports a 5-year dividend growth of 11.71% year and a payout ratio of 41.09%.

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 Atos P/E ratio at -0.00 and Amdocs's P/E ratio at 19.69. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Atos P/B ratio is -0.00 while Amdocs's P/B ratio is 2.86.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Atos has seen a 5-year revenue growth of 3.17%, while Amdocs's is 0.49%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Atos's ROE at 543.30% and Amdocs's ROE at 14.40%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $0.07 for Atos and $85.85 for Amdocs. Over the past year, Atos's prices ranged from $0.07 to $1.70, with a yearly change of 2328.57%. Amdocs's prices fluctuated between $74.41 and $94.04, with a yearly change of 26.38%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.