Cognizant Technology Solutions Corp Class A (CTSH)vsMagic Software Enterprises Ltd (MGIC)
CTSH
Cognizant Technology Solutions Corp Class A
$59.79
-0.75%
TECHNOLOGY · Cap: $28.86B
MGIC
Magic Software Enterprises Ltd
$17.38
0.00%
TECHNOLOGY · Cap: $853.35M
Smart Verdict
WallStSmart Research — data-driven comparison
Cognizant Technology Solutions Corp Class A generates 3399% more annual revenue ($21.11B vs $603.22M). CTSH leads profitability with a 10.6% profit margin vs 6.6%. MGIC appears more attractively valued with a PEG of 0.73. CTSH earns a higher WallStSmart Score of 71/100 (B).
CTSH
Strong Buy71
out of 100
Grade: B
MGIC
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+63.1%
Fair Value
$192.25
Current Price
$59.79
$132.46 discount
Margin of Safety
+29.8%
Fair Value
$28.67
Current Price
$17.38
$11.29 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 22.1% YoY
Growing faster than its price suggests
Areas to Watch
4.9% revenue growth
Weak financial health signals
Smaller company, higher risk/reward
6.6% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : CTSH
The strongest argument for CTSH centers on P/E Ratio, Price/Book, EPS Growth. PEG of 1.02 suggests the stock is reasonably priced for its growth.
Bull Case : MGIC
The strongest argument for MGIC centers on PEG Ratio. Revenue growth of 13.1% demonstrates continued momentum. PEG of 0.73 suggests the stock is reasonably priced for its growth.
Bear Case : CTSH
The primary concerns for CTSH are Revenue Growth, Piotroski F-Score.
Bear Case : MGIC
The primary concerns for MGIC are Market Cap, Profit Margin.
Key Dynamics to Monitor
CTSH carries more volatility with a beta of 0.98 — expect wider price swings.
MGIC is growing revenue faster at 13.1% — sustainability is the question.
CTSH generates stronger free cash flow (781M), providing more financial flexibility.
Monitor INFORMATION TECHNOLOGY SERVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CTSH scores higher overall (71/100 vs 59/100). MGIC offers better value entry with a 29.8% 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.
Magic Software Enterprises Ltd
TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA
Magic Software Enterprises Ltd. provides proprietary application development, business process integration, vertical software solutions, and information technology (IT) outsourcing software services in Israel and internationally. The company is headquartered in Or Yehuda, Israel.
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