Cognizant Technology Solutions Corp Class A (CTSH)vsFormula Systems 1985 Ltd ADR (FORTY)
CTSH
Cognizant Technology Solutions Corp Class A
$53.21
-0.36%
TECHNOLOGY · Cap: $24.68B
FORTY
Formula Systems 1985 Ltd ADR
$126.00
-8.86%
TECHNOLOGY · Cap: $1.80B
Smart Verdict
WallStSmart Research — data-driven comparison
Cognizant Technology Solutions Corp Class A generates 680% more annual revenue ($21.41B vs $2.75B). FORTY leads profitability with a 22.7% profit margin vs 10.4%. CTSH appears more attractively valued with a PEG of 0.85. CTSH earns a higher WallStSmart Score of 67/100 (B-).
CTSH
Strong Buy67
out of 100
Grade: B-
FORTY
Buy63
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
-79.8%
Fair Value
$74.26
Current Price
$126.00
$51.74 premium
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
Reasonable price relative to book value
Every $100 of equity generates 45 in profit
Earnings expanding 82.8% YoY
Keeps 23 of every $100 in revenue as profit
19.2% revenue growth
Areas to Watch
3.6% earnings growth
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
Weak financial health signals
Expensive relative to growth rate
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 : FORTY
The strongest argument for FORTY centers on Price/Book, Return on Equity, EPS Growth. Profitability is solid with margins at 22.7% and operating margin at 11.1%. Revenue growth of 19.2% demonstrates continued momentum.
Bear Case : CTSH
The primary concerns for CTSH are EPS Growth.
Bear Case : FORTY
The primary concerns for FORTY are P/E Ratio, Market Cap, Piotroski F-Score.
Key Dynamics to Monitor
CTSH profiles as a value stock while FORTY is a growth play — different risk/reward profiles.
CTSH carries more volatility with a beta of 0.81 — expect wider price swings.
FORTY is growing revenue faster at 19.2% — sustainability is the question.
Monitor INFORMATION TECHNOLOGY SERVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CTSH scores higher overall (67/100 vs 63/100). 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.
Formula Systems 1985 Ltd ADR
TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA
Formula Systems (1985) Ltd., provides software, proprietary and non-proprietary software, and software product marketing and support services in Israel and internationally. The company is headquartered in Or Yehuda, Israel.
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