Cognizant Technology Solutions Corp Class A (CTSH)vsParsons Corp (PSN)
CTSH
Cognizant Technology Solutions Corp Class A
$59.38
-0.82%
TECHNOLOGY · Cap: $26.97B
PSN
Parsons Corp
$44.09
-2.74%
TECHNOLOGY · Cap: $4.84B
Smart Verdict
WallStSmart Research — data-driven comparison
Cognizant Technology Solutions Corp Class A generates 244% more annual revenue ($21.64B vs $6.29B). CTSH leads profitability with a 10.3% profit margin vs 2.5%. CTSH trades at a lower P/E of 12.8x. CTSH earns a higher WallStSmart Score of 65/100 (B-).
CTSH
Strong Buy65
out of 100
Grade: B-
PSN
Hold41
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+74.5%
Fair Value
$277.89
Current Price
$59.38
$218.51 discount
Margin of Safety
-29.6%
Fair Value
$46.47
Current Price
$44.09
$2.38 premium
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
Reasonable price relative to book value
Areas to Watch
4.5% revenue growth
3.8% earnings growth
Premium valuation, high expectations priced in
2.5% margin — thin
Operating margin of 2.2%
Revenue declined 0.5%
Comparative Analysis Report
WallStSmart ResearchBull Case : CTSH
The strongest argument for CTSH centers on Altman Z-Score, Debt/Equity, PEG Ratio. PEG of 0.87 suggests the stock is reasonably priced for its growth.
Bull Case : PSN
The strongest argument for PSN centers on Price/Book.
Bear Case : CTSH
The primary concerns for CTSH are Revenue Growth, EPS Growth.
Bear Case : PSN
The primary concerns for PSN are P/E Ratio, Profit Margin, Operating Margin. Thin 2.5% margins leave little buffer for downturns.
Key Dynamics to Monitor
CTSH carries more volatility with a beta of 0.83 — expect wider price swings.
CTSH is growing revenue faster at 4.5% — sustainability is the question.
CTSH generates stronger free cash flow (459M), providing more financial flexibility.
Monitor INFORMATION TECHNOLOGY SERVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CTSH scores higher overall (65/100 vs 41/100). 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.
Parsons Corp
TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA
Parsons Corporation provides technology-based solutions in defense, intelligence, and critical infrastructure markets in North America, the Middle East, and internationally. The company is headquartered in Centreville, Virginia.
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