WallStSmart

Cognizant Technology Solutions Corp Class A (CTSH)vsKyndryl Holdings Inc (KD)

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Smart Verdict

WallStSmart Research — data-driven comparison

Cognizant Technology Solutions Corp Class A generates 42% more annual revenue ($21.41B vs $15.09B). CTSH leads profitability with a 10.4% profit margin vs 1.3%. CTSH trades at a lower P/E of 9.7x. CTSH earns a higher WallStSmart Score of 70/100 (B-).

CTSH

Strong Buy

70

out of 100

Grade: B-

Growth: 4.7Profit: 7.0Value: 9.3Quality: 8.5
Piotroski: 5/9Altman Z: 4.49

KD

Hold

43

out of 100

Grade: D

Growth: 2.0Profit: 5.5Value: 6.0Quality: 3.5
Piotroski: 4/9Altman Z: 1.12
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CTSHUndervalued (+73.4%)

Margin of Safety

+73.4%

Fair Value

$266.17

Current Price

$53.90

$212.28 discount

UndervaluedFair: $266.17Overvalued

Intrinsic value data unavailable for KD.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CTSH5 strengths · Avg: 9.2/10
P/E RatioValuation
9.7x10/10

Attractively priced relative to earnings

Debt/EquityHealth
0.0710/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.4910/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.738/10

Growing faster than its price suggests

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

KD2 strengths · Avg: 8.0/10
P/E RatioValuation
14.3x8/10

Attractively priced relative to earnings

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Areas to Watch

CTSH1 concerns · Avg: 4.0/10
EPS GrowthGrowth
3.6%4/10

3.6% earnings growth

KD4 concerns · Avg: 2.5/10
Profit MarginProfitability
1.3%3/10

1.3% margin — thin

Operating MarginProfitability
4.1%3/10

Operating margin of 4.1%

Revenue GrowthGrowth
-0.8%2/10

Revenue declined 0.8%

EPS GrowthGrowth
-73.1%2/10

Earnings declined 73.1%

Comparative Analysis Report

WallStSmart Research

Bull Case : CTSH

The strongest argument for CTSH centers on P/E Ratio, Debt/Equity, Altman Z-Score. PEG of 0.73 suggests the stock is reasonably priced for its growth.

Bull Case : KD

The strongest argument for KD centers on P/E Ratio, Price/Book.

Bear Case : CTSH

The primary concerns for CTSH are EPS Growth.

Bear Case : KD

The primary concerns for KD are Profit Margin, Operating Margin, Revenue Growth. Debt-to-equity of 4.22 is elevated, increasing financial risk. Thin 1.3% margins leave little buffer for downturns.

Key Dynamics to Monitor

KD carries more volatility with a beta of 1.74 — expect wider price swings.

CTSH is growing revenue faster at 5.8% — sustainability is the question.

KD generates stronger free cash flow (382M), providing more financial flexibility.

Monitor INFORMATION TECHNOLOGY SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CTSH scores higher overall (70/100 vs 43/100). Both earn "Strong Buy" and "Hold" 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.

Kyndryl Holdings Inc

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA

Kyndryl Holdings Inc (KD) is a leading global technology services provider that emerged as a standalone entity from IBM in 2021. Specializing in the management, modernization, and optimization of critical IT infrastructure, Kyndryl offers a comprehensive range of services, including cloud integration, data security, and digital transformation solutions. Through strategic alliances with top technology firms, the company delivers customized and innovative services designed to address the dynamic needs of the digital landscape. With its extensive industry expertise and focus on fostering technological advancements, Kyndryl serves as an indispensable partner for organizations looking to enhance their operational capabilities and sustain competitive advantage.

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