Critical Comparison: Synchronoss Technologies (SNCR) and Amdocs (DOX)

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

Insider and Institutional Ownership

80.4% of Synchronoss Technologies shares are held by institutional investors. Comparatively, 92.4% of Amdocs shares are held by institutional investors. 10.5% of Synchronoss Technologies shares are held by insiders. Comparatively, 15.4% of Amdocs shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Synchronoss Technologies and Amdocs, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Synchronoss Technologies 2 4 0 0 1.67
Amdocs 0 3 3 0 2.50

Synchronoss Technologies presently has a consensus target price of $10.80, suggesting a potential upside of 70.08%. Amdocs has a consensus target price of $69.24, suggesting a potential upside of 0.00%. Given Synchronoss Technologies’ higher probable upside, analysts clearly believe Synchronoss Technologies is more favorable than Amdocs.

Profitability

This table compares Synchronoss Technologies and Amdocs’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Synchronoss Technologies N/A N/A N/A
Amdocs 11.36% 15.07% 10.08%

Volatility and Risk

Synchronoss Technologies has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, Amdocs has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500.

Dividends

Amdocs pays an annual dividend of $1.00 per share and has a dividend yield of 1.4%. Synchronoss Technologies does not pay a dividend. Amdocs pays out 28.2% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Synchronoss Technologies and Amdocs’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Synchronoss Technologies $476.67 million 0.63 $19.58 million N/A N/A
Amdocs $3.87 billion 2.57 $436.82 million $3.55 19.50

Amdocs has higher revenue and earnings than Synchronoss Technologies.

Summary

Amdocs beats Synchronoss Technologies on 11 of the 14 factors compared between the two stocks.

About Synchronoss Technologies

Synchronoss Technologies, Inc. provides cloud solutions and software-based activation for connected devices worldwide. The company's products and services include cloud-based sync, backup, storage and content engagement capabilities, broadband connectivity solutions, analytics, white label messaging, and identity/access management that enable communications service providers, cable operators/multi-services operators, original equipment manufacturers with embedded connectivity, and multi-channel retailers, as well as other customers to accelerate and monetize value-add services for secure and broadband networks and connected devices. It also provides Synchronoss Enterprise solutions, such as secure mobility management, data and analytics, and identity and access management solutions for the financial, telecommunications, healthcare, life sciences, and government sectors; and Synchronoss Personal Cloud platform that delivers an operator-branded experience for subscribers to backup, restore, synchronize, and share their personal content across smartphones, tablets, computers, and other connected devices. In addition, the company offers software as a service for the organizations to securely manage, control, track, search, exchange, and collaborate on sensitive information inside and outside the firewall. Its products and platforms are designed to enable multiple converged communication services to manage across a range of distribution channels, such as e-commerce, m-commerce, telesales, customer stores, indirect, and other retail outlets. The company markets and sells its services through direct sales force and strategic partners. Synchronoss Technologies, Inc. was founded in 2000 and is headquartered in Bridgewater, New Jersey.

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.

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