Cognizant Technology Solutions Corp Class A (CTSH)vsInternational Business Machines (IBM)
CTSH
Cognizant Technology Solutions Corp Class A
$61.88
+0.05%
TECHNOLOGY · Cap: $26.99B
IBM
International Business Machines
$237.75
+0.11%
TECHNOLOGY · Cap: $229.21B
Smart Verdict
WallStSmart Research — data-driven comparison
International Business Machines generates 219% more annual revenue ($69.09B vs $21.64B). IBM leads profitability with a 15.5% profit margin vs 10.3%. CTSH appears more attractively valued with a PEG of 0.91. CTSH earns a higher WallStSmart Score of 65/100 (B-).
CTSH
Strong Buy65
out of 100
Grade: B-
IBM
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+74.5%
Fair Value
$277.89
Current Price
$61.88
$216.01 discount
Margin of Safety
-80.1%
Fair Value
$132.02
Current Price
$237.75
$105.73 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Mega-cap, among the largest globally
Every $100 of equity generates 31 in profit
Generating 2.4B in free cash flow
Areas to Watch
4.5% revenue growth
3.8% earnings growth
Expensive relative to growth rate
1.1% revenue growth
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : CTSH
The strongest argument for CTSH centers on Altman Z-Score, Debt/Equity, PEG Ratio. PEG of 0.91 suggests the stock is reasonably priced for its growth.
Bull Case : IBM
The strongest argument for IBM centers on Market Cap, Return on Equity, Free Cash Flow. Profitability is solid with margins at 15.5% and operating margin at 16.6%.
Bear Case : CTSH
The primary concerns for CTSH are Revenue Growth, EPS Growth.
Bear Case : IBM
The primary concerns for IBM are PEG Ratio, Revenue Growth, Debt/Equity. Debt-to-equity of 1.89 is elevated, increasing financial risk.
Key Dynamics to Monitor
CTSH carries more volatility with a beta of 0.83 — expect wider price swings.
CTSH is growing revenue faster at 4.5% — sustainability is the question.
IBM generates stronger free cash flow (2.4B), providing more financial flexibility.
Monitor INFORMATION TECHNOLOGY SERVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CTSH scores higher overall (65/100 vs 54/100). 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.
International Business Machines
TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA
International Business Machines Corporation (IBM) is an American multinational technology company headquartered in Armonk, New York, with operations in over 170 countries. The company began in 1911, founded in Endicott, New York, as the Computing-Tabulating-Recording Company (CTR) and was renamed International Business Machines in 1924. IBM is incorporated in New York. IBM produces and sells computer hardware, middleware and software, and provides hosting and consulting services in areas ranging from mainframe computers to nanotechnology. IBM is also a major research organization, holding the record for most annual U.S. patents generated by a business (as of 2020) for 28 consecutive years. Inventions by IBM include the automated teller machine (ATM), the floppy disk, the hard disk drive, the magnetic stripe card, the relational database, the SQL programming language, the UPC barcode, and dynamic random-access memory (DRAM). The IBM mainframe, exemplified by the System/360, was the dominant computing platform during the 1960s and 1970s.
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