WallStSmart

Applied Digital Corporation (APLD)vsCognizant Technology Solutions Corp Class A (CTSH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cognizant Technology Solutions Corp Class A generates 3440% more annual revenue ($21.64B vs $611.31M). CTSH leads profitability with a 10.3% profit margin vs -39.9%. CTSH appears more attractively valued with a PEG of 0.91. CTSH earns a higher WallStSmart Score of 65/100 (B-).

APLD

Hold

38

out of 100

Grade: F

Growth: 8.0Profit: 2.0Value: 3.7Quality: 5.0
Piotroski: 4/9Altman Z: 0.70

CTSH

Strong Buy

65

out of 100

Grade: B-

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

APLDSignificantly Overvalued (-48.5%)

Margin of Safety

-48.5%

Fair Value

$18.28

Current Price

$26.42

$8.14 premium

UndervaluedFair: $18.28Overvalued
CTSHUndervalued (+74.6%)

Margin of Safety

+74.6%

Fair Value

$279.04

Current Price

$60.00

$219.04 discount

UndervaluedFair: $279.04Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

APLD1 strengths · Avg: 10.0/10
Revenue GrowthGrowth
406.6%10/10

Revenue surging 406.6% year-over-year

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
0.918/10

Growing faster than its price suggests

P/E RatioValuation
12.9x8/10

Attractively priced relative to earnings

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Areas to Watch

APLD4 concerns · Avg: 3.0/10
PEG RatioValuation
1.834/10

Expensive relative to growth rate

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
-11.8%2/10

ROE of -11.8% — below average capital efficiency

Free Cash FlowQuality
$-1.16B2/10

Negative free cash flow — burning cash

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

Comparative Analysis Report

WallStSmart Research

Bull Case : APLD

The strongest argument for APLD centers on Revenue Growth. Revenue growth of 406.6% demonstrates continued momentum.

Bull Case : CTSH

The strongest argument for CTSH centers on Altman Z-Score, Debt/Equity, PEG Ratio. PEG of 0.91 suggests the stock is reasonably priced for its growth.

Bear Case : APLD

The primary concerns for APLD are PEG Ratio, EPS Growth, Return on Equity. Debt-to-equity of 2.86 is elevated, increasing financial risk.

Bear Case : CTSH

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

Key Dynamics to Monitor

APLD profiles as a hypergrowth stock while CTSH is a value play — different risk/reward profiles.

APLD carries more volatility with a beta of 5.73 — expect wider price swings.

APLD is growing revenue faster at 406.6% — sustainability is the question.

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

Bottom Line

CTSH scores higher overall (65/100 vs 38/100). 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.

Applied Digital Corporation

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA

Applied Blockchain, Inc. is engaged in crypto mining and co-hosting operations. The company is headquartered in Dallas, Texas.

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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.

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