Cognizant Technology Solutions (NASDAQ:CTSH – Get Free Report) and TSS (NASDAQ:TSSI – Get Free Report) are both technology companies, but which is the better business? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, earnings, risk, valuation and institutional ownership.
Risk and Volatility
Cognizant Technology Solutions has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, TSS has a beta of 1.98, suggesting that its stock price is 98% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and recommmendations for Cognizant Technology Solutions and TSS, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cognizant Technology Solutions | 1 | 13 | 10 | 0 | 2.38 |
| TSS | 0 | 2 | 1 | 0 | 2.33 |
Insider & Institutional Ownership
92.4% of Cognizant Technology Solutions shares are owned by institutional investors. 0.4% of Cognizant Technology Solutions shares are owned by insiders. Comparatively, 16.0% of TSS shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Cognizant Technology Solutions and TSS”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cognizant Technology Solutions | $21.11 billion | 1.27 | $2.23 billion | $4.65 | 12.83 |
| TSS | $245.72 million | 1.06 | $15.12 million | $0.48 | 19.21 |
Cognizant Technology Solutions has higher revenue and earnings than TSS. Cognizant Technology Solutions is trading at a lower price-to-earnings ratio than TSS, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Cognizant Technology Solutions and TSS’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cognizant Technology Solutions | 10.26% | 17.70% | 12.81% |
| TSS | 7.44% | 19.22% | 8.46% |
Summary
Cognizant Technology Solutions beats TSS on 9 of the 14 factors compared between the two stocks.
About Cognizant Technology Solutions
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, Health Sciences, Products and Resources, and Communications, Media and Technology. The company provides customer experience, 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 offers solution to manufacturers, automakers, retailers and travel and hospitality companies, as well as companies providing logistics, energy and utility services; and digital content, business process improvement, technology modernization, and the creation of unified and compelling user experience services to communications, media and entertainment, education, and information services and technology companies. The company was incorporated in 1988 and is headquartered in Teaneck, New Jersey.
About TSS
TSS, Inc. offers planning, design, engineering, construction management, commissioning and maintenance services. It provides these services primarily for specialized facilities such as data centers, communications rooms, call centers, laboratories, trading floors, network operations centers, medical facilities and similar environments. TSS Inc., formerly known as Fortress International Group, Inc., is based in Columbia, United States.
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