Contrasting Cognizant Technology Solutions Corporation (CTSH) & Its Rivals

Cognizant Technology Solutions Corporation (NASDAQ: CTSH) is one of 204 publicly-traded companies in the “IT Services & Consulting” industry, but how does it compare to its rivals? We will compare Cognizant Technology Solutions Corporation to related businesses based on the strength of its analyst recommendations, profitability, earnings, institutional ownership, valuation, dividends and risk.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Cognizant Technology Solutions Corporation and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cognizant Technology Solutions Corporation 0 4 20 1 2.88
Cognizant Technology Solutions Corporation Competitors 731 4785 7649 175 2.54

Cognizant Technology Solutions Corporation currently has a consensus price target of $81.33, suggesting a potential upside of 9.53%. As a group, “IT Services & Consulting” companies have a potential upside of 2.87%. Given Cognizant Technology Solutions Corporation’s stronger consensus rating and higher possible upside, equities analysts plainly believe Cognizant Technology Solutions Corporation is more favorable than its rivals.

Volatility & Risk

Cognizant Technology Solutions Corporation has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500. Comparatively, Cognizant Technology Solutions Corporation’s rivals have a beta of 1.13, indicating that their average share price is 13% more volatile than the S&P 500.

Insider and Institutional Ownership

87.4% of Cognizant Technology Solutions Corporation shares are owned by institutional investors. Comparatively, 61.0% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 1.1% of Cognizant Technology Solutions Corporation shares are owned by company insiders. Comparatively, 16.8% of shares of all “IT Services & Consulting” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Cognizant Technology Solutions Corporation pays an annual dividend of $0.60 per share and has a dividend yield of 0.8%. Cognizant Technology Solutions Corporation pays out 18.5% of its earnings in the form of a dividend. As a group, “IT Services & Consulting” companies pay a dividend yield of 1.7% and pay out 39.2% of their earnings in the form of a dividend.

Profitability

This table compares Cognizant Technology Solutions Corporation and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cognizant Technology Solutions Corporation 13.42% 18.94% 14.16%
Cognizant Technology Solutions Corporation Competitors -19.93% -240.08% -3.77%

Earnings & Valuation

This table compares Cognizant Technology Solutions Corporation and its rivals revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Cognizant Technology Solutions Corporation $13.49 billion $1.55 billion 22.92
Cognizant Technology Solutions Corporation Competitors $3.05 billion $310.91 million 246.40

Cognizant Technology Solutions Corporation has higher revenue and earnings than its rivals. Cognizant Technology Solutions Corporation is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Cognizant Technology Solutions Corporation beats its rivals on 11 of the 15 factors compared.

About Cognizant Technology Solutions Corporation

Cognizant Technology Solutions Corporation is a professional services company. The Company operates through four segments: Financial Services, Healthcare, Manufacturing/Retail/Logistics, and Other. The Financial Services segment includes customers providing banking/transaction processing, capital markets and insurance services. The Healthcare segment includes healthcare providers and payers, as well as life sciences customers, including pharmaceutical, biotech and medical device companies. The Manufacturing/Retail/Logistics segment includes manufacturers, retailers, travel and other hospitality customers, as well as customers providing logistics services. The Other segment includes its information, media and entertainment services, communications and high technology operating segments. Its services include consulting and technology services and outsourcing services. Its outsourcing services include application maintenance, IT infrastructure services and business process services.

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