Cognizant Technology Solutions Corp Class A (CTSH)vsDXC Technology Co (DXC)
CTSH
Cognizant Technology Solutions Corp Class A
$53.21
-0.36%
TECHNOLOGY · Cap: $24.68B
DXC
DXC Technology Co
$9.01
-5.26%
TECHNOLOGY · Cap: $1.49B
Smart Verdict
WallStSmart Research — data-driven comparison
Cognizant Technology Solutions Corp Class A generates 69% more annual revenue ($21.41B vs $12.64B). CTSH leads profitability with a 10.4% profit margin vs 0.1%. DXC appears more attractively valued with a PEG of 0.49. CTSH earns a higher WallStSmart Score of 67/100 (B-).
CTSH
Strong Buy67
out of 100
Grade: B-
DXC
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+73.7%
Fair Value
$269.78
Current Price
$53.21
$216.57 discount
Margin of Safety
+43.8%
Fair Value
$24.58
Current Price
$9.01
$15.57 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Reasonable price relative to book value
Growing faster than its price suggests
Reasonable price relative to book value
Earnings expanding 96.8% YoY
Areas to Watch
3.6% earnings growth
Smaller company, higher risk/reward
ROE of 0.6% — below average capital efficiency
0.1% margin — thin
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : CTSH
The strongest argument for CTSH centers on P/E Ratio, Debt/Equity, Altman Z-Score. PEG of 0.85 suggests the stock is reasonably priced for its growth.
Bull Case : DXC
The strongest argument for DXC centers on PEG Ratio, Price/Book, EPS Growth. PEG of 0.49 suggests the stock is reasonably priced for its growth.
Bear Case : CTSH
The primary concerns for CTSH are EPS Growth.
Bear Case : DXC
The primary concerns for DXC are Market Cap, Return on Equity, Profit Margin. A P/E of 91.7x leaves little room for execution misses. Thin 0.1% margins leave little buffer for downturns.
Key Dynamics to Monitor
CTSH carries more volatility with a beta of 0.81 — expect wider price swings.
CTSH is growing revenue faster at 5.8% — sustainability is the question.
CTSH generates stronger free cash flow (198M), providing more financial flexibility.
Monitor INFORMATION TECHNOLOGY SERVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CTSH scores higher overall (67/100 vs 59/100). DXC offers better value entry with a 43.8% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Cognizant Technology Solutions Corp Class A
TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA
Cognizant is an American multinational technology company that provides business consulting, information technology and outsourcing services. It is headquartered in Teaneck, New Jersey, United States.
DXC Technology Co
TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA
DXC Technology is an American multinational corporation that provides business-to-business information technology services.
Visit Website →Compare with Other INFORMATION TECHNOLOGY SERVICES Stocks
Want to dig deeper into these stocks?