Head to Head Review: Amdocs (NASDAQ:DOX) versus VNET Group (NASDAQ:VNET)

VNET Group (NASDAQ:VNET) and Amdocs (NASDAQ:DOX) are both technology companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, institutional ownership, risk and earnings.

Earnings & Valuation

This table compares VNET Group and Amdocs”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VNET Group	$1.42 billion	0.60	-$36.01 million	($1.42)	-2.22
Amdocs	$4.70 billion	0.94	$564.70 million	$4.67	8.74

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

Profitability

This table compares VNET Group and Amdocs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
VNET Group	-22.29%	-36.25%	-4.43%
Amdocs	10.59%	20.70%	11.06%

Risk & Volatility

VNET Group has a beta of 0.35, meaning that its stock price is 65% less volatile than the S&P 500. Comparatively, Amdocs has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500.

Institutional & Insider Ownership

72.8% of VNET Group shares are owned by institutional investors. Comparatively, 92.0% of Amdocs shares are owned by institutional investors. 12.1% of VNET Group shares are owned by insiders. Comparatively, 15.4% of Amdocs shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for VNET Group and Amdocs, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VNET Group	1	1	5	0	2.57
Amdocs	1	4	3	0	2.25

VNET Group presently has a consensus target price of $14.88, suggesting a potential upside of 371.72%. Amdocs has a consensus target price of $78.33, suggesting a potential upside of 91.92%. Given VNET Group’s stronger consensus rating and higher probable upside, equities research analysts plainly believe VNET Group is more favorable than Amdocs.

Summary

Amdocs beats VNET Group on 11 of the 14 factors compared between the two stocks.

About VNET Group

VNET Group, Inc., an investment holding company, provides hosting and related services in China. It offers managed hosting services consisting of managed retail services, such as colocation services that dedicate data center space to house customers' servers and networking equipment, as well as allow customers to lease partial or entire cabinets for their servers; interconnectivity services that allow customers to connect their servers; value-added services, including hybrid IT, bare metal, firewall, server load balancing, data backup and recovery, data center management, server management, and backup server services; cloud services that allow customers to run applications over the internet using IT infrastructure; and VPN Services that extend customers' private networks by setting up connections through the public internet. The company also provides server administration services, such as operating system support and assistance with updates, server monitoring, server backup and restoration, server security evaluation, firewall services, and disaster recovery services. It serves information technology and cloud services, communications and social networking, gaming and entertainment, e-commerce, automobile, financial services, and blue-chip and small-to-mid-sized enterprises; government agencies; individuals; and telecommunication carriers. The company was formerly known as 21Vianet Group, Inc. and changed its name to VNET Group, Inc. in October 2021. VNET Group, Inc. was founded in 1999 and is headquartered in Beijing, the People's Republic of China.

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.