WallStSmart

Cognizant Technology Solutions Corp Class A (CTSH)vsPenguin Solutions, Inc. (PENG)

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Smart Verdict

WallStSmart Research — data-driven comparison

Cognizant Technology Solutions Corp Class A generates 1150% more annual revenue ($21.64B vs $1.73B). PENG leads profitability with a 10.4% profit margin vs 10.3%. CTSH trades at a lower P/E of 13.4x. PENG earns a higher WallStSmart Score of 68/100 (B-).

CTSH

Buy

63

out of 100

Grade: C+

Growth: 4.0Profit: 7.5Value: 8.7Quality: 8.5
Piotroski: 5/9Altman Z: 4.49

PENG

Strong Buy

68

out of 100

Grade: B-

Growth: 8.7Profit: 6.0Value: 5.3Quality: 5.0
Piotroski: 2/9Altman Z: 1.59
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CTSHUndervalued (+74.2%)

Margin of Safety

+74.2%

Fair Value

$274.52

Current Price

$66.54

$207.98 discount

UndervaluedFair: $274.52Overvalued

Intrinsic value data unavailable for PENG.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CTSH5 strengths · Avg: 8.6/10
Altman Z-ScoreHealth
4.4910/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.149/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.978/10

Growing faster than its price suggests

P/E RatioValuation
13.4x8/10

Attractively priced relative to earnings

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

PENG2 strengths · Avg: 10.0/10
Revenue GrowthGrowth
67.7%10/10

Revenue surging 67.7% year-over-year

EPS GrowthGrowth
1188.0%10/10

Earnings expanding 1188.0% YoY

Areas to Watch

CTSH2 concerns · Avg: 4.0/10
Revenue GrowthGrowth
4.5%4/10

4.5% revenue growth

EPS GrowthGrowth
3.8%4/10

3.8% earnings growth

PENG4 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.594/10

Distress zone — elevated risk

Debt/EquityHealth
1.173/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Free Cash FlowQuality
$-170.79M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull 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 : PENG

The strongest argument for PENG centers on Revenue Growth, EPS Growth. Revenue growth of 67.7% demonstrates continued momentum.

Bear Case : CTSH

The primary concerns for CTSH are Revenue Growth, EPS Growth.

Bear Case : PENG

The primary concerns for PENG are Altman Z-Score, Debt/Equity, Piotroski F-Score.

Key Dynamics to Monitor

CTSH profiles as a value stock while PENG is a growth play — different risk/reward profiles.

PENG carries more volatility with a beta of 2.86 — expect wider price swings.

PENG is growing revenue faster at 67.7% — sustainability is the question.

CTSH generates stronger free cash flow (459M), providing more financial flexibility.

Bottom Line

PENG scores higher overall (68/100 vs 63/100) and 67.7% revenue growth. 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.

Penguin Solutions, Inc.

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA

Penguin Solutions, Inc., a memory-focused company, engages in the designing and development of enterprise solutions in the United States, China, Europe, and internationally. The company is headquartered in Grand Cayman, Cayman Islands.

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