Cognizant Technology Solutions Corp Class A (CTSH)vsGDS Holdings Ltd (GDS)
CTSH
Cognizant Technology Solutions Corp Class A
$53.21
-0.36%
TECHNOLOGY · Cap: $24.68B
GDS
GDS Holdings Ltd
$34.00
-6.16%
TECHNOLOGY · Cap: $6.52B
Smart Verdict
WallStSmart Research — data-driven comparison
Cognizant Technology Solutions Corp Class A generates 77% more annual revenue ($21.41B vs $12.08B). GDS leads profitability with a 23.5% profit margin vs 10.4%. CTSH appears more attractively valued with a PEG of 0.85. GDS earns a higher WallStSmart Score of 83/100 (A-).
CTSH
Strong Buy67
out of 100
Grade: B-
GDS
Exceptional Buy83
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+73.8%
Fair Value
$270.97
Current Price
$53.21
$217.76 discount
Margin of Safety
+18.1%
Fair Value
$56.72
Current Price
$34.00
$22.72 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
Earnings expanding 207.0% YoY
Keeps 24 of every $100 in revenue as profit
Reasonable price relative to book value
Strong operational efficiency at 27.0%
Revenue surging 23.6% year-over-year
Areas to Watch
3.6% earnings growth
Elevated debt levels
Negative free cash flow — burning cash
Distress zone — elevated risk
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 : GDS
The strongest argument for GDS centers on EPS Growth, Profit Margin, Price/Book. Profitability is solid with margins at 23.5% and operating margin at 27.0%. Revenue growth of 23.6% demonstrates continued momentum.
Bear Case : CTSH
The primary concerns for CTSH are EPS Growth.
Bear Case : GDS
The primary concerns for GDS are Debt/Equity, Free Cash Flow, Altman Z-Score.
Key Dynamics to Monitor
CTSH profiles as a value stock while GDS is a growth play — different risk/reward profiles.
CTSH carries more volatility with a beta of 0.81 — expect wider price swings.
GDS is growing revenue faster at 23.6% — sustainability is the question.
CTSH generates stronger free cash flow (198M), providing more financial flexibility.
Bottom Line
GDS scores higher overall (83/100 vs 67/100), backed by strong 23.5% margins and 23.6% revenue growth. CTSH offers better value entry with a 73.8% margin of safety. Both earn "Exceptional Buy" and "Strong 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.
GDS Holdings Ltd
TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · China
GDS Holdings Limited, develops and operates data centers in the People's Republic of China. The company is headquartered in Shanghai, the People's Republic of China.
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