Comparing Amdocs (NASDAQ:DOX) & TravelSky Technology (OTCMKTS:TSYHY)

Amdocs (NASDAQ:DOX) and TravelSky Technology (OTCMKTS:TSYHY) are both mid-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.

Risk and Volatility

Amdocs has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500. Comparatively, TravelSky Technology has a beta of -0.09, suggesting that its share price is 109% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Amdocs and TravelSky Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amdocs	0	0	4	0	3.00
TravelSky Technology	0	0	0	0	0.00

Amdocs currently has a consensus price target of $105.33, suggesting a potential upside of 24.52%. Given Amdocs’ stronger consensus rating and higher possible upside, research analysts plainly believe Amdocs is more favorable than TravelSky Technology.

Dividends

Amdocs pays an annual dividend of $2.11 per share and has a dividend yield of 2.5%. TravelSky Technology pays an annual dividend of $0.28 per share and has a dividend yield of 2.0%. Amdocs pays out 42.8% of its earnings in the form of a dividend. Amdocs has increased its dividend for 14 consecutive years. Amdocs is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares Amdocs and TravelSky Technology”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amdocs	$5.00 billion	1.91	$493.20 million	$4.93	17.16
TravelSky Technology	$1.23 billion	3.42	$288.53 million	N/A	N/A

Amdocs has higher revenue and earnings than TravelSky Technology.

Insider and Institutional Ownership

92.0% of Amdocs shares are owned by institutional investors. 15.4% of Amdocs shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Amdocs and TravelSky Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amdocs	11.94%	19.66%	10.95%
TravelSky Technology	N/A	N/A	N/A

Summary

Amdocs beats TravelSky Technology on 13 of the 15 factors compared between the two stocks.

About Amdocs

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 TravelSky Technology

TravelSky Technology Limited, together with its subsidiaries, provides information technology solutions for aviation and travel industries in the People’s Republic of China. It primarily offers aviation information technology (AIT), distribution information technology, accounting, settlement, and clearing services. The company’s AIT services include electronic travel distribution services, including inventory control system, computer reservation system, and airport passenger processing system services, as well as other related information technology solutions. It also provides cargo management services, as well as sells and installs related information systems; computer hardware and software development, and data network services; and computer system engineering design and installation and payment services. In addition, the company engages in technology development; sales of computers and auxiliary equipment; contracting of computer software and hardware engineering projects; technical consultation and service; system integration; real estate development and sales; self-developed commercial housing contracting; labor service subcontracting; freight management services; and trade financing services. TravelSky Technology Limited was founded in 1979 and is based in Wanchai, Hong Kong.