WallStSmart

Cognizant Technology Solutions Corp Class A (CTSH)vsGDS Holdings Ltd (GDS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cognizant Technology Solutions Corp Class A generates 85% more annual revenue ($21.11B vs $11.43B). CTSH leads profitability with a 10.6% profit margin vs 8.3%. CTSH appears more attractively valued with a PEG of 1.02. 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

GDS

Hold

47

out of 100

Grade: D+

Growth: 5.3Profit: 5.0Value: 2.0Quality: 5.3
Piotroski: 4/9Altman Z: 0.43
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CTSHUndervalued (+63.1%)

Margin of Safety

+63.1%

Fair Value

$192.25

Current Price

$59.79

$132.46 discount

UndervaluedFair: $192.25Overvalued
GDSSignificantly Overvalued (-986.0%)

Margin of Safety

-986.0%

Fair Value

$4.28

Current Price

$45.00

$40.72 premium

UndervaluedFair: $4.28Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CTSH3 strengths · Avg: 8.0/10
P/E RatioValuation
13.1x8/10

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

GDS1 strengths · Avg: 8.0/10
Price/BookValuation
2.3x8/10

Reasonable price relative to book value

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

GDS4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Return on EquityProfitability
3.7%3/10

ROE of 3.7% — below average capital efficiency

PEG RatioValuation
13.172/10

Expensive relative to growth rate

P/E RatioValuation
69.0x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull 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 : GDS

The strongest argument for GDS centers on Price/Book.

Bear Case : CTSH

The primary concerns for CTSH are Revenue Growth, Piotroski F-Score.

Bear Case : GDS

The primary concerns for GDS are EPS Growth, Return on Equity, PEG Ratio. A P/E of 69.0x leaves little room for execution misses.

Key Dynamics to Monitor

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

GDS is growing revenue faster at 8.6% — 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 47/100). 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.

GDS Holdings Ltd

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · China

GDS Holdings Limited, develops and operates data centers in the People's Republic of China. The company is headquartered in Shanghai, the People's Republic of China.

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