DOX vs CTSH

For growth investors, Cognizant Technology Solutions Corporation (CTSH) is the stronger pick with 7.

0% revenue growth year-over-year, versus -9. 4% for Amdocs Limited (DOX). Cognizant Technology Solutions Corporation (CTSH) offers the better valuation at 11. 4x trailing P/E (9. 1x forward), making it the more compelling value choice. Analysts rate Amdocs Limited (DOX) a "Buy" — based on 11 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Cognizant Technology Solutions Corporation (CTSH) is the cheapest at 11.

4x versus Amdocs Limited at 12. 9x. On forward P/E, Amdocs Limited is actually cheaper at 8. 7x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Cognizant Technology Solutions Corporation wins at 0. 75x versus Amdocs Limited's 1. 37x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Amdocs Limited (DOX) delivered a total return of -3.

5%, compared to -22. 9% for Cognizant Technology Solutions Corporation (CTSH). Over 10 years, the gap is even starker: DOX returned +36. 5% versus CTSH's +0. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Amdocs Limited (DOX) is the lower-risk stock at 0.

58β versus Cognizant Technology Solutions Corporation's 0. 75β — meaning CTSH is approximately 31% more volatile than DOX relative to the S&P 500. On balance sheet safety, Cognizant Technology Solutions Corporation (CTSH) carries a lower debt/equity ratio of 10% versus 24% for Amdocs Limited — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Cognizant Technology Solutions Corporation (CTSH) is pulling ahead at 7.

0% versus -9. 4% for Amdocs Limited (DOX). On earnings-per-share growth, the picture is similar: Amdocs Limited grew EPS 18. 8% year-over-year, compared to 0. 9% for Cognizant Technology Solutions Corporation. Over a 3-year CAGR, CTSH leads at 2. 8% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Amdocs Limited (DOX) is the more profitable company, earning 12.

5% net margin versus 10. 6% for Cognizant Technology Solutions Corporation — meaning it keeps 12. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: DOX leads at 18. 2% versus 16. 7% for CTSH. At the gross margin level — before operating expenses — DOX leads at 36. 6%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Cognizant Technology Solutions Corporation (CTSH) is the more undervalued stock at a PEG of 0. 75x versus Amdocs Limited's 1. 37x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Amdocs Limited (DOX) trades at 8. 7x forward P/E versus 9. 1x for Cognizant Technology Solutions Corporation — 0. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CTSH: 60. 4% to $83. 33.

All stocks in this comparison pay dividends.

Amdocs Limited (DOX) offers the highest yield at 3. 1%, versus 2. 4% for Cognizant Technology Solutions Corporation (CTSH).

For long-horizon retirement investors, Amdocs Limited (DOX) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

58), 3. 1% yield). Both have compounded well over 10 years (DOX: +36. 5%, CTSH: +0. 0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.