Cognizant Technology Solutions Corp Class A (CTSH)vsPenguin Solutions, Inc. (PENG)
CTSH
Cognizant Technology Solutions Corp Class A
$59.79
-0.75%
TECHNOLOGY · Cap: $28.86B
PENG
Penguin Solutions, Inc.
$18.44
+3.60%
TECHNOLOGY · Cap: $969.21M
Smart Verdict
WallStSmart Research — data-driven comparison
Cognizant Technology Solutions Corp Class A generates 1440% more annual revenue ($21.11B vs $1.37B). CTSH leads profitability with a 10.6% profit margin vs 1.9%. CTSH trades at a lower P/E of 13.1x. CTSH earns a higher WallStSmart Score of 71/100 (B).
CTSH
Strong Buy71
out of 100
Grade: B
PENG
Hold40
out of 100
Grade: D
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
-1162.0%
Fair Value
$1.50
Current Price
$18.44
$16.94 premium
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
Revenue surging 60.0% year-over-year
Reasonable price relative to book value
Areas to Watch
4.9% revenue growth
Weak financial health signals
Smaller company, higher risk/reward
ROE of 5.7% — below average capital efficiency
1.9% margin — thin
Premium valuation, high expectations priced in
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 : PENG
The strongest argument for PENG centers on Revenue Growth, Price/Book. Revenue growth of 60.0% demonstrates continued momentum.
Bear Case : CTSH
The primary concerns for CTSH are Revenue Growth, Piotroski F-Score.
Bear Case : PENG
The primary concerns for PENG are Market Cap, Return on Equity, Profit Margin. A P/E of 83.8x leaves little room for execution misses. Thin 1.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
CTSH profiles as a value stock while PENG is a hypergrowth play — different risk/reward profiles.
PENG carries more volatility with a beta of 2.21 — expect wider price swings.
PENG is growing revenue faster at 60.0% — sustainability is the question.
CTSH generates stronger free cash flow (781M), providing more financial flexibility.
Bottom Line
CTSH scores higher overall (71/100 vs 40/100). 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.
Penguin Solutions, Inc.
TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA
Penguin Solutions, Inc., a memory-focused company, engages in the designing and development of enterprise solutions in the United States, China, Europe, and internationally. The company is headquartered in Grand Cayman, Cayman Islands.
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