WallStSmart

Cognizant Technology Solutions Corp Class A (CTSH)vsParsons Corp (PSN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Cognizant Technology Solutions Corp Class A generates 240% more annual revenue ($21.41B vs $6.30B). CTSH leads profitability with a 10.4% profit margin vs 3.6%. CTSH trades at a lower P/E of 11.3x. CTSH earns a higher WallStSmart Score of 67/100 (B-).

CTSH

Strong Buy

67

out of 100

Grade: B-

Growth: 4.7Profit: 7.0Value: 9.3Quality: 8.5
Piotroski: 5/9Altman Z: 4.49

PSN

Hold

42

out of 100

Grade: D

Growth: 4.0Profit: 5.5Value: 4.3Quality: 6.5
Piotroski: 4/9Altman Z: 2.30
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CTSHUndervalued (+73.7%)

Margin of Safety

+73.7%

Fair Value

$269.78

Current Price

$41.83

$227.95 discount

UndervaluedFair: $269.78Overvalued
PSNSignificantly Overvalued (-27.8%)

Margin of Safety

-27.8%

Fair Value

$47.13

Current Price

$58.72

$11.59 premium

UndervaluedFair: $47.13Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CTSH5 strengths · Avg: 9.6/10
P/E RatioValuation
11.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.0710/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.4910/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.858/10

Growing faster than its price suggests

PSN1 strengths · Avg: 8.0/10
Price/BookValuation
2.4x8/10

Reasonable price relative to book value

Areas to Watch

CTSH1 concerns · Avg: 4.0/10
EPS GrowthGrowth
3.6%4/10

3.6% earnings growth

PSN4 concerns · Avg: 2.8/10
P/E RatioValuation
27.1x4/10

Moderate valuation

Profit MarginProfitability
3.6%3/10

3.6% margin — thin

Revenue GrowthGrowth
-4.1%2/10

Revenue declined 4.1%

EPS GrowthGrowth
-17.9%2/10

Earnings declined 17.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : CTSH

The strongest argument for CTSH centers on P/E Ratio, Price/Book, Debt/Equity. PEG of 0.85 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 EPS Growth.

Bear Case : PSN

The primary concerns for PSN are P/E Ratio, Profit Margin, Revenue Growth. Thin 3.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

CTSH carries more volatility with a beta of 0.81 — expect wider price swings.

CTSH is growing revenue faster at 5.8% — sustainability is the question.

CTSH generates stronger free cash flow (198M), providing more financial flexibility.

Monitor INFORMATION TECHNOLOGY SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CTSH scores higher overall (67/100 vs 42/100). 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.

Want to dig deeper into these stocks?