Head to Head Review: Amdocs (NASDAQ:DOX) and Wix.com (NASDAQ:WIX)

Amdocs (NASDAQ:DOXGet Free Report) and Wix.com (NASDAQ:WIXGet Free Report) are both mid-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, earnings, institutional ownership, valuation and risk.

Valuation and Earnings

This table compares Amdocs and Wix.com”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Amdocs $4.53 billion 1.24 $564.70 million $5.00 10.42
Wix.com $1.99 billion 1.50 $50.65 million ($0.78) -65.91

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

Institutional and Insider Ownership

92.0% of Amdocs shares are owned by institutional investors. Comparatively, 81.5% of Wix.com shares are owned by institutional investors. 15.4% of Amdocs shares are owned by insiders. Comparatively, 6.2% of Wix.com shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Amdocs has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500. Comparatively, Wix.com has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amdocs 1 3 3 0 2.29
Wix.com 2 9 10 1 2.45

Amdocs currently has a consensus target price of $86.67, suggesting a potential upside of 66.35%. Wix.com has a consensus target price of $94.10, suggesting a potential upside of 83.04%. Given Wix.com’s stronger consensus rating and higher possible upside, analysts plainly believe Wix.com is more favorable than Amdocs.

Profitability

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

Net Margins Return on Equity Return on Assets
Amdocs 11.81% 19.77% 10.87%
Wix.com -1.97% -33.28% 2.84%

Summary

Amdocs beats Wix.com on 9 of the 15 factors compared between the two stocks.

About Amdocs

(Get Free Report)

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 Wix.com

(Get Free Report)

Wix.com Ltd., together with its subsidiaries, operates as a cloud-based web development platform for registered users and creators worldwide. The company offers Wix Editor, a drag-and-drop visual development and website editing environment platform; and Wix ADI that enables users to have the freedom of customization that the classic editor offers. It also provides Wix Logo Maker that generates a logo, including through the use of artificial intelligence; Wix Answers to support users; and Payments by Wix, a payment platform, which helps its users receive payments from their customers through their Wix Website. In addition, the company offers various vertical-specific applications that business owners use to operate various aspects of their business online. Further, it provides a range of complementary services, including Wix App Market, a marketplace that offers its registered users various free and paid web applications for building, growing, and managing their businesses; Wix marketplace that brings users seeking help in creating and managing a website together with Web experts; and Wix owner App, a native mobile application, which enables users to manage their Websites and Wix operating systems. The company was formerly known as Wixpress Ltd. The company was incorporated in 2006 and is headquartered in Tel Aviv, Israel.

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