WallStSmart

Cognizant Technology Solutions Corp Class A (CTSH)vsKyndryl Holdings Inc (KD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cognizant Technology Solutions Corp Class A generates 40% more annual revenue ($21.11B vs $15.12B). CTSH leads profitability with a 10.6% profit margin vs 1.7%. KD trades at a lower P/E of 11.8x. 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

KD

Hold

45

out of 100

Grade: D

Growth: 2.7Profit: 5.5Value: 5.7Quality: 3.5
Piotroski: 4/9Altman Z: 1.45
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
KDSignificantly Overvalued (-69.8%)

Margin of Safety

-69.8%

Fair Value

$7.14

Current Price

$12.65

$5.51 premium

UndervaluedFair: $7.14Overvalued

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

KD2 strengths · Avg: 9.0/10
P/E RatioValuation
11.8x10/10

Attractively priced relative to earnings

Price/BookValuation
2.4x8/10

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

KD4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
3.1%4/10

3.1% revenue growth

Profit MarginProfitability
1.7%3/10

1.7% margin — thin

Operating MarginProfitability
4.3%3/10

Operating margin of 4.3%

EPS GrowthGrowth
-71.9%2/10

Earnings declined 71.9%

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 : KD

The strongest argument for KD centers on P/E Ratio, Price/Book.

Bear Case : CTSH

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

Bear Case : KD

The primary concerns for KD are Revenue Growth, Profit Margin, Operating Margin. Debt-to-equity of 3.33 is elevated, increasing financial risk. Thin 1.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

KD carries more volatility with a beta of 2.00 — expect wider price swings.

CTSH is growing revenue faster at 4.9% — 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 45/100). 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.

Kyndryl Holdings Inc

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA

Kyndryl Holdings Inc (KD), a leading global technology services provider spun off from IBM in 2021, specializes in managing and modernizing critical IT infrastructures for enterprises across various sectors. The company offers a comprehensive range of services, including cloud integration, data security, and digital transformation, enabling organizations to innovate and improve operational efficiencies. Through strategic partnerships with top technology firms, Kyndryl is well-positioned to deliver cutting-edge solutions that address the dynamic needs of a rapidly evolving digital landscape, solidifying its role as a vital partner for businesses seeking to enhance their technological capabilities and competitive edge.

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