WallStSmart

Cognizant Technology Solutions Corp Class A (CTSH)vsParsons Corp (PSN)

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Smart Verdict

WallStSmart Research — data-driven comparison

Cognizant Technology Solutions Corp Class A generates 244% more annual revenue ($21.64B vs $6.29B). CTSH leads profitability with a 10.3% profit margin vs 2.5%. CTSH trades at a lower P/E of 12.8x. CTSH earns a higher WallStSmart Score of 65/100 (B-).

CTSH

Strong Buy

65

out of 100

Grade: B-

Growth: 4.0Profit: 7.5Value: 8.7Quality: 8.5
Piotroski: 5/9Altman Z: 4.49

PSN

Hold

41

out of 100

Grade: D

Growth: 4.0Profit: 5.0Value: 3.7Quality: 6.5
Piotroski: 4/9Altman Z: 2.30
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Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CTSHUndervalued (+74.5%)

Margin of Safety

+74.5%

Fair Value

$277.89

Current Price

$59.38

$218.51 discount

UndervaluedFair: $277.89Overvalued
PSNSignificantly Overvalued (-29.6%)

Margin of Safety

-29.6%

Fair Value

$46.47

Current Price

$44.09

$2.38 premium

UndervaluedFair: $46.47Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CTSH5 strengths · Avg: 8.6/10
Altman Z-ScoreHealth
4.4910/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.149/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.878/10

Growing faster than its price suggests

P/E RatioValuation
12.8x8/10

Attractively priced relative to earnings

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

PSN1 strengths · Avg: 8.0/10
Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Areas to Watch

CTSH2 concerns · Avg: 4.0/10
Revenue GrowthGrowth
4.5%4/10

4.5% revenue growth

EPS GrowthGrowth
3.8%4/10

3.8% earnings growth

PSN4 concerns · Avg: 3.0/10
P/E RatioValuation
31.3x4/10

Premium valuation, high expectations priced in

Profit MarginProfitability
2.5%3/10

2.5% margin — thin

Operating MarginProfitability
2.2%3/10

Operating margin of 2.2%

Revenue GrowthGrowth
-0.5%2/10

Revenue declined 0.5%

Comparative Analysis Report

WallStSmart Research

Bull Case : CTSH

The strongest argument for CTSH centers on Altman Z-Score, Debt/Equity, PEG Ratio. PEG of 0.87 suggests the stock is reasonably priced for its growth.

Bull Case : PSN

The strongest argument for PSN centers on Price/Book.

Bear Case : CTSH

The primary concerns for CTSH are Revenue Growth, EPS Growth.

Bear Case : PSN

The primary concerns for PSN are P/E Ratio, Profit Margin, Operating Margin. Thin 2.5% margins leave little buffer for downturns.

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.

CTSH generates stronger free cash flow (459M), providing more financial flexibility.

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

Bottom Line

CTSH scores higher overall (65/100 vs 41/100). 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.

Parsons Corp

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA

Parsons Corporation provides technology-based solutions in defense, intelligence, and critical infrastructure markets in North America, the Middle East, and internationally. The company is headquartered in Centreville, Virginia.

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