DOX vs EPAM

For growth investors, EPAM Systems, Inc.

(EPAM) is the stronger pick with 15. 4% revenue growth year-over-year, versus -9. 4% for Amdocs Limited (DOX). Amdocs Limited (DOX) offers the better valuation at 12. 9x trailing P/E (8. 7x 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, Amdocs Limited (DOX) is the cheapest at 12.

9x versus EPAM Systems, Inc. at 15. 5x. On forward P/E, EPAM Systems, Inc. is actually cheaper at 8. 2x — 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: EPAM Systems, Inc. wins at 0. 70x 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 -77. 3% for EPAM Systems, Inc. (EPAM). Over 10 years, the gap is even starker: EPAM returned +48. 8% versus DOX's +36. 5%. 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 EPAM Systems, Inc. 's 1. 21β — meaning EPAM is approximately 111% more volatile than DOX relative to the S&P 500. On balance sheet safety, EPAM Systems, Inc. (EPAM) carries a lower debt/equity ratio of 4% versus 24% for Amdocs Limited — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), EPAM Systems, Inc.

(EPAM) is pulling ahead at 15. 4% 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 -14. 3% for EPAM Systems, Inc.. Over a 3-year CAGR, EPAM leads at 4. 2% 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 6. 9% for EPAM Systems, Inc. — 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 9. 6% for EPAM. 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, EPAM Systems, Inc. (EPAM) is the more undervalued stock at a PEG of 0. 70x versus Amdocs Limited's 1. 37x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, EPAM Systems, Inc. (EPAM) trades at 8. 2x forward P/E versus 8. 7x for Amdocs Limited — 0. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for EPAM: 88. 7% to $197. 00.

In this comparison, DOX (3.

1% yield) pays a dividend. EPAM does not pay a meaningful dividend and should not be held primarily for income.

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%, EPAM: +48. 8%), 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.

In terms of investment character: DOX is a small-cap deep-value stock; EPAM is a small-cap high-growth stock. DOX pays a dividend while EPAM does not, making them suitable for different income and tax situations. 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.