Amdocs (DOX) and Monotype Imaging (TYPE) Head-To-Head Analysis

Amdocs (NASDAQ: DOX) and Monotype Imaging (NASDAQ:TYPE) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, profitability, earnings, institutional ownership and risk.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amdocs 0 3 4 0 2.57
Monotype Imaging 1 0 1 0 2.00

Amdocs presently has a consensus price target of $72.37, indicating a potential upside of 13.34%. Monotype Imaging has a consensus price target of $27.50, indicating a potential upside of 35.14%. Given Monotype Imaging’s higher probable upside, analysts clearly believe Monotype Imaging is more favorable than Amdocs.

Risk and Volatility

Amdocs has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, Monotype Imaging has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500.

Insider & Institutional Ownership

92.0% of Amdocs shares are owned by institutional investors. Comparatively, 89.2% of Monotype Imaging shares are owned by institutional investors. 15.4% of Amdocs shares are owned by company insiders. Comparatively, 3.4% of Monotype Imaging shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Amdocs pays an annual dividend of $1.00 per share and has a dividend yield of 1.6%. Monotype Imaging pays an annual dividend of $0.46 per share and has a dividend yield of 2.3%. Amdocs pays out 28.2% of its earnings in the form of a dividend. Monotype Imaging pays out 86.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Amdocs has increased its dividend for 5 consecutive years and Monotype Imaging has increased its dividend for 5 consecutive years.

Profitability

This table compares Amdocs and Monotype Imaging’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Amdocs 10.56% 14.98% 9.98%
Monotype Imaging 5.19% 8.88% 5.62%

Earnings & Valuation

This table compares Amdocs and Monotype Imaging’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Amdocs $3.87 billion 2.37 $436.82 million $3.55 17.99
Monotype Imaging $235.79 million 3.63 $11.56 million $0.53 38.40

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

Summary

Amdocs beats Monotype Imaging on 11 of the 16 factors compared between the two stocks.

About Amdocs

Amdocs Limited, through its subsidiaries, provides software and services solutions to the communications, entertainment, pay TV, and media industry service providers worldwide. The company offers customer experience and monetization solutions that allow its customers to contextual and personalize interactions. It also provides operational support systems for fixed line, broadband, wireless, and cable TV networks; and network optimization suite to plan, build, launch, manage, and optimize mobile networks. In addition, the company offers network functions virtualization standards-based software solutions to virtualize network services; intelligence and real-time data products; and enterprise and B2B service to small and medium-sized business and enterprise customers. Further, it provides Internet of things monetization and connected home platforms to support connected devices, a cloud-based environment to offer integrated home services, and a solution that allows enterprises to purchase connectivity from service providers in a wholesale mode; and over-the-top and entertainment products. Additionally, the company offers mobile financial services, and big data analytics products; and entertainment and media solutions that enable the management of media and advertising selling, fulfillment, operations, advertiser and consumer experience, and financial processes in digital and print media, as well as Amdocs Optima, a converged multi-tenant digital customer management and commerce platform. It also provides thought leadership and advisory, systems integration, transformation, managed, order gateway, testing, revenue guard, and network services, as well as digital business operations for order to activation. The company was founded in 1988 and is headquartered in Chesterfield, Missouri.

About Monotype Imaging

Monotype Imaging Holdings Inc. develops, markets, and licenses technologies and fonts in the United States, the United Kingdom, Germany, Japan, and rest of Asia. The company offers font products, including its own fonts from the Monotype Libraries, as well as fonts from third parties through its e-commerce Websites, including myfonts.com, fonts.com, fontshop.com, and linotype.com. It also provides font scaling engine and font compression technologies that are compatible with virtually font formats and industry standards, including the PostScript and PCL printing languages; font solutions for consumer device manufacturers, including Edge and SmartHint technologies for precise pixel adjustments to enable fonts to display with optimal quality in suboptimal display environments; printer driver kits; and fonts for printer manufacturers. In addition, the company offers screen imaging technologies; a mobile engagement platform that enables brands and advertisers to create and distribute branded content; brand engagement and social endorsement technologies through mobile and digital channels; and various tools to enhance user experiences. Further, it provides expert consultation and custom type design services; and technology support and professional services. The company provides approximately 14,000 typeface designs, and supports approximately 250 Latin and non-Latin languages. Its solutions are used in various devices, including laser printers, digital copiers, mobile phones, automotive displays, navigation devices, e-book readers, tablets, digital cameras, digital televisions, set-top boxes, consumer appliances, and Internet of things devices, as well as in various software applications and operating systems. The company serves content creators, marketers, consumer device manufacturers, and independent software vendors and developers. Monotype Imaging Holdings Inc. is headquartered in Woburn, Massachusetts.

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