Cognizant Technology Solutions Corp Class A (CTSH)vsGDS Holdings Ltd (GDS)
CTSH
Cognizant Technology Solutions Corp Class A
$66.36
+0.21%
TECHNOLOGY · Cap: $28.16B
GDS
GDS Holdings Ltd
$23.86
+4.60%
TECHNOLOGY · Cap: $4.57B
Smart Verdict
WallStSmart Research — data-driven comparison
Cognizant Technology Solutions Corp Class A generates 76% more annual revenue ($21.64B vs $12.26B). GDS leads profitability with a 30.5% profit margin vs 10.3%. GDS appears more attractively valued with a PEG of 0.53. GDS earns a higher WallStSmart Score of 77/100 (B+).
CTSH
Buy63
out of 100
Grade: C+
GDS
Strong Buy77
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+74.2%
Fair Value
$274.52
Current Price
$66.36
$208.16 discount
Margin of Safety
+15.6%
Fair Value
$55.06
Current Price
$23.86
$31.20 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 31 of every $100 in revenue as profit
Earnings expanding 207.0% YoY
Growing faster than its price suggests
Areas to Watch
4.5% revenue growth
3.8% earnings growth
Elevated debt levels
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : CTSH
The strongest argument for CTSH centers on Altman Z-Score, Debt/Equity, PEG Ratio. PEG of 0.97 suggests the stock is reasonably priced for its growth.
Bull Case : GDS
The strongest argument for GDS centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 30.5% and operating margin at 14.2%. PEG of 0.53 suggests the stock is reasonably priced for its growth.
Bear Case : CTSH
The primary concerns for CTSH are Revenue Growth, EPS Growth.
Bear Case : GDS
The primary concerns for GDS are Debt/Equity, Altman Z-Score.
Key Dynamics to Monitor
CTSH profiles as a value stock while GDS is a mature play — different risk/reward profiles.
CTSH carries more volatility with a beta of 0.85 — expect wider price swings.
GDS is growing revenue faster at 6.5% — sustainability is the question.
CTSH generates stronger free cash flow (459M), providing more financial flexibility.
Bottom Line
GDS scores higher overall (77/100 vs 63/100), backed by strong 30.5% margins. CTSH offers better value entry with a 74.2% margin of safety. Both earn "Strong Buy" and "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.
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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