Sunday, August 14

Thoughtworks (NASDAQ:TWKS) versus Cognizant Technology Solutions (NASDAQ:CTSH) Head-To-Head Comparison



Thoughtworks (NASDAQ:TWKS – Get Rating) and Cognizant Technology Solutions (NASDAQ:CTSH – Get Rating) are both business services companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.

Profitability

This table compares Thoughtworks and Cognizant Technology Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Thoughtworks -8.85% -22.60% -6.16%
Cognizant Technology Solutions 11.59% 19.07% 12.84%

Institutional and Insider Ownership

17.0% of Thoughtworks shares are owned by institutional investors. Comparatively, 90.7% of Cognizant Technology Solutions shares are owned by institutional investors. 0.3% of Cognizant Technology Solutions shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Thoughtworks and Cognizant Technology Solutions’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Thoughtworks $1.07 billion 4.71 -$23.62 million N/A N/A
Cognizant Technology Solutions $18.51 billion 2.08 $2.14 billion $4.17 17.60

Cognizant Technology Solutions has higher revenue and earnings than Thoughtworks.

Analyst Recommendations

This is a breakdown of current ratings for Thoughtworks and Cognizant Technology Solutions, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Thoughtworks 0 3 9 0 2.75
Cognizant Technology Solutions 1 4 9 0 2.57

Thoughtworks presently has a consensus price target of $29.00, indicating a potential upside of 78.46%. Cognizant Technology Solutions has a consensus price target of $92.53, indicating a potential upside of 26.10%. Given Thoughtworks’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Thoughtworks is more favorable than Cognizant Technology Solutions.

Summary

Cognizant Technology Solutions beats Thoughtworks on 7 of the 10 factors compared between the two stocks.

Thoughtworks Company Profile (Get Rating)

Thoughtworks Holding, Inc. provides technology consultancy services in North America, the Asia Pacific, Europe, and Latin America. The company’s consultancy services integrate strategy, design, and software engineering to enable enterprises and technology disruptors to thrive as modern digital businesses. It offers enterprise modernization, platforms, and cloud services, including modernization strategy and execution, digital platform strategy and engineering organization transformation, cloud modernization, cloud-native application support and evolution, and platform assessment and remediation; and customer experience, product, and design services comprising idea to market, customer experience strategy, product management transformation, and product design and delivery. The company also provides data and artificial intelligence services, such as data strategy, intelligent products, data platforms and data mesh, continuous delivery for machine learning, and data governance; and digital transformation and operations services, which include delivery transformation, digital fluency, organization transformation, value-driven portfolio management, technology strategy, executive advisory, and digital foundations training. It serves its clients in various industry verticals, including technology and business services; energy, public, and health services; retail and consumer; financial services and insurance; and automotive, travel, and transportation. The company was founded in 1993 and is headquartered in Chicago, Illinois.

Cognizant Technology Solutions Company Profile (Get Rating)

Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. It operates through four segments: Financial Services; Healthcare; Products and Resources; and Communications, Media and Technology. The company offers customer experience enhancement, robotic process automation, analytics, and AI services in areas, such as digital lending, fraud detection, and next generation payments; the shift towards consumerism, outcome-based contracting, digital health, delivering integrated seamless, omni-channel, and patient-centered experience; and services that drive operational improvements in areas, such as clinical development, pharmacovigilance, and manufacturing, as well as claims processing, enrollment, membership, and billing to healthcare providers and payers, and life sciences companies, including pharmaceutical, biotech, and medical device companies. It also provides solution to manufacturers, retailers and travel and hospitality companies, as well as companies providing logistics, energy and utility services; and digital content, the creation of personalized user experience, and acceleration of digital engineering services to information, media and entertainment, and communications and technology companies. The company was founded in 1994 and is headquartered in Teaneck, New Jersey.



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