WallStSmart

Cognizant Technology Solutions Corp Class A (CTSH)vsFidelity National Information Services Inc (FIS)

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Smart Verdict

WallStSmart Research — data-driven comparison

Cognizant Technology Solutions Corp Class A generates 98% more annual revenue ($21.11B vs $10.68B). CTSH leads profitability with a 10.6% profit margin vs 3.6%. FIS appears more attractively valued with a PEG of 0.28. CTSH earns a higher WallStSmart Score of 71/100 (B).

CTSH

Strong Buy

71

out of 100

Grade: B

Growth: 5.3Profit: 7.5Value: 10.0Quality: 5.5
Piotroski: 2/9

FIS

Strong Buy

67

out of 100

Grade: B-

Growth: 6.7Profit: 5.5Value: 4.7Quality: 5.0
Piotroski: 5/9Altman Z: -0.02
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Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CTSHUndervalued (+63.3%)

Margin of Safety

+63.3%

Fair Value

$193.09

Current Price

$60.29

$132.80 discount

UndervaluedFair: $193.09Overvalued
FISSignificantly Overvalued (-41.4%)

Margin of Safety

-41.4%

Fair Value

$34.16

Current Price

$49.21

$15.05 premium

UndervaluedFair: $34.16Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CTSH4 strengths · Avg: 8.0/10
PEG RatioValuation
1.008/10

Growing faster than its price suggests

P/E RatioValuation
13.4x8/10

Attractively priced relative to earnings

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

EPS GrowthGrowth
22.1%8/10

Earnings expanding 22.1% YoY

FIS4 strengths · Avg: 9.0/10
PEG RatioValuation
0.2810/10

Growing faster than its price suggests

EPS GrowthGrowth
88.1%10/10

Earnings expanding 88.1% YoY

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
24.6%8/10

Strong operational efficiency at 24.6%

Areas to Watch

CTSH2 concerns · Avg: 3.5/10
Revenue GrowthGrowth
4.9%4/10

4.9% revenue growth

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

FIS4 concerns · Avg: 2.5/10
Return on EquityProfitability
2.6%3/10

ROE of 2.6% — below average capital efficiency

Profit MarginProfitability
3.6%3/10

3.6% margin — thin

P/E RatioValuation
69.1x2/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
-0.022/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : CTSH

The strongest argument for CTSH centers on PEG Ratio, P/E Ratio, Price/Book. PEG of 1.00 suggests the stock is reasonably priced for its growth.

Bull Case : FIS

The strongest argument for FIS centers on PEG Ratio, EPS Growth, Price/Book. PEG of 0.28 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 : FIS

The primary concerns for FIS are Return on Equity, Profit Margin, P/E Ratio. A P/E of 69.1x leaves little room for execution misses. Thin 3.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

CTSH carries more volatility with a beta of 0.98 — expect wider price swings.

FIS is growing revenue faster at 8.2% — 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 67/100). 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.

Fidelity National Information Services Inc

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA

FIS is an American Fortune 500 company which offers a wide range of financial products and services. Headquartered in Jacksonville, Florida, FIS employs approximately 63,000 people worldwide. FIS is most known for its development of Financial Technology, or FinTech, and as of Q2 2020 it offers its solutions in three primary segments: Merchant Solutions, Banking Solutions, and Capital Market Solutions.

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