Cognizant Technology Solutions Corp Class A (CTSH)vsCharles Schwab Corp (SCHW)
CTSH
Cognizant Technology Solutions Corp Class A
$59.79
-0.75%
TECHNOLOGY · Cap: $28.86B
SCHW
Charles Schwab Corp
$94.47
-0.55%
FINANCIAL SERVICES · Cap: $169.34B
Smart Verdict
WallStSmart Research — data-driven comparison
Charles Schwab Corp generates 13% more annual revenue ($23.92B vs $21.11B). SCHW leads profitability with a 37.0% profit margin vs 10.6%. CTSH appears more attractively valued with a PEG of 1.02. SCHW earns a higher WallStSmart Score of 75/100 (B+).
CTSH
Strong Buy71
out of 100
Grade: B
SCHW
Strong Buy75
out of 100
Grade: B+
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
+56.0%
Fair Value
$217.62
Current Price
$94.47
$123.16 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
Keeps 37 of every $100 in revenue as profit
Strong operational efficiency at 49.7%
Conservative balance sheet, low leverage
Large-cap with strong market position
18.9% revenue growth
Earnings expanding 41.1% YoY
Areas to Watch
4.9% revenue growth
Weak financial health signals
Negative free cash flow — burning cash
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 : SCHW
The strongest argument for SCHW centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 37.0% and operating margin at 49.7%. Revenue growth of 18.9% demonstrates continued momentum.
Bear Case : CTSH
The primary concerns for CTSH are Revenue Growth, Piotroski F-Score.
Bear Case : SCHW
The primary concerns for SCHW are Free Cash Flow.
Key Dynamics to Monitor
CTSH profiles as a value stock while SCHW is a growth play — different risk/reward profiles.
CTSH carries more volatility with a beta of 0.98 — expect wider price swings.
SCHW is growing revenue faster at 18.9% — sustainability is the question.
CTSH generates stronger free cash flow (781M), providing more financial flexibility.
Bottom Line
SCHW scores higher overall (75/100 vs 71/100), backed by strong 37.0% margins and 18.9% revenue growth. CTSH offers better value entry with a 63.1% margin of safety. Both earn "Strong Buy" and "Strong 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.
Charles Schwab Corp
FINANCIAL SERVICES · CAPITAL MARKETS · USA
The Charles Schwab Corporation is an American multinational financial services company. It offers banking, commercial banking, an electronic trading platform, and wealth management advisory services to both retail and institutional clients.
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