Cognizant Technology Solutions Corp Class A (CTSH)vsKyndryl Holdings Inc (KD)
CTSH
Cognizant Technology Solutions Corp Class A
$59.79
-0.75%
TECHNOLOGY · Cap: $28.86B
KD
Kyndryl Holdings Inc
$12.65
+2.35%
TECHNOLOGY · Cap: $2.84B
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 Buy71
out of 100
Grade: B
KD
Hold45
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+63.1%
Fair Value
$192.25
Current Price
$59.79
$132.46 discount
Margin of Safety
-69.8%
Fair Value
$7.14
Current Price
$12.65
$5.51 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 22.1% YoY
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
4.9% revenue growth
Weak financial health signals
3.1% revenue growth
1.7% margin — thin
Operating margin of 4.3%
Earnings declined 71.9%
Comparative Analysis Report
WallStSmart ResearchBull 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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