Comparing Glu Mobile (GLUU) & Amdocs (DOX)

Glu Mobile (NASDAQ: GLUU) and Amdocs (NASDAQ:DOX) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Glu Mobile and Amdocs, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Glu Mobile 0 2 5 0 2.71
Amdocs 0 3 3 0 2.50

Glu Mobile presently has a consensus price target of $5.32, indicating a potential downside of 20.22%. Amdocs has a consensus price target of $69.24, indicating a potential upside of 0.39%. Given Amdocs’ higher possible upside, analysts plainly believe Amdocs is more favorable than Glu Mobile.

Profitability

This table compares Glu Mobile and Amdocs’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Glu Mobile -26.33% -34.72% -19.81%
Amdocs 11.36% 15.07% 10.08%

Earnings and Valuation

This table compares Glu Mobile and Amdocs’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Glu Mobile $286.83 million 3.25 -$97.57 million ($0.51) -13.08
Amdocs $3.87 billion 2.56 $436.82 million $3.55 19.43

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

Dividends

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

Institutional and Insider Ownership

45.9% of Glu Mobile shares are owned by institutional investors. Comparatively, 92.3% of Amdocs shares are owned by institutional investors. 5.8% of Glu Mobile shares are owned by company insiders. Comparatively, 15.4% of Amdocs shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Glu Mobile has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500. Comparatively, Amdocs has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500.

Summary

Amdocs beats Glu Mobile on 11 of the 16 factors compared between the two stocks.

About Glu Mobile

Glu Mobile Inc. develops, publishes, and markets a portfolio of free-to-play mobile games for the users of smartphones and tablet devices. The company publishes titles in four genres, including home décor, sports and action, fashion and celebrity, and time management. It creates games based on its own brands, including Contract Killer, Cooking Dash, Covet Fashion, Deer Hunter, Design Home, and QuizUp. The company also creates games based on third-party licensed brands, such as Restaurant Dash with Gordon Ramsay and Kim Kardashian; and Hollywood, MLB Tap Sports Baseball, and Racing Rivals. It markets, sells, and distributes its games primarily through direct-to-consumer digital storefronts worldwide. The company was formerly known as Sorrent, Inc. and changed its name to Glu Mobile Inc. in May 2005. Glu Mobile Inc. was incorporated in 2001 and is headquartered in San Francisco, California.

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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