Cognizant Technology Solutions (NASDAQ:CTSH) & Fujitsu (OTCMKTS:FJTSY) Head to Head Contrast

Fujitsu (OTCMKTS:FJTSY) and Cognizant Technology Solutions (NASDAQ:CTSH) are both large-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Risk and Volatility

Fujitsu has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, Cognizant Technology Solutions has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500.

Earnings & Valuation

This table compares Fujitsu and Cognizant Technology Solutions”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fujitsu	$23.31 billion	1.83	$1.45 billion	N/A	N/A
Cognizant Technology Solutions	$19.74 billion	1.76	$2.24 billion	$4.92	14.35

Cognizant Technology Solutions has lower revenue, but higher earnings than Fujitsu.

Dividends

Fujitsu pays an annual dividend of $0.13 per share and has a dividend yield of 0.6%. Cognizant Technology Solutions pays an annual dividend of $1.24 per share and has a dividend yield of 1.8%. Cognizant Technology Solutions pays out 25.2% of its earnings in the form of a dividend. Cognizant Technology Solutions has increased its dividend for 6 consecutive years. Cognizant Technology Solutions is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of current recommendations for Fujitsu and Cognizant Technology Solutions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fujitsu	0	0	0	0	0.00
Cognizant Technology Solutions	0	13	6	0	2.32

Cognizant Technology Solutions has a consensus target price of $85.88, indicating a potential upside of 21.66%. Given Cognizant Technology Solutions’ stronger consensus rating and higher possible upside, analysts plainly believe Cognizant Technology Solutions is more favorable than Fujitsu.

Institutional & Insider Ownership

0.1% of Fujitsu shares are owned by institutional investors. Comparatively, 92.4% of Cognizant Technology Solutions shares are owned by institutional investors. 0.3% of Cognizant Technology Solutions shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fujitsu	8.72%	17.48%	9.63%
Cognizant Technology Solutions	11.89%	16.77%	12.34%

Summary

Cognizant Technology Solutions beats Fujitsu on 11 of the 15 factors compared between the two stocks.

About Fujitsu

Fujitsu Limited operates as an information and communication technology company in Japan and internationally. The company operates through three segments: Technology Solutions, Ubiquitous Solutions, and Device Solutions. The company offers multi cloud and hybrid IT services; assessment and consultative services; SAP landscape transformation services; new workplace; datacentre products comprising integrated systems, storage solutions, servers, network switches, and infrastructure management; workplace products including notebooks, tablet PC’s, desktop PC’s, workstations, thin clients, displays, and peripheral devices; consumption based IT services; installation and implementation services; and hardware, software, and infrastructure support services, as well as electronic devices, air conditioning products, and network solutions. It also provides cyber security solutions, including cyber security consulting, managed security servies, and security operation and advanced threat centers; internet of things, artificial intelligence platform and solutions; and software products comprising FUJITSU Software Infrastructure Manager and FUJITSU Software ServerView Suite. Further, the company offers electronic components, such as semiconductor packages and batteries. It serves automotive, manufacturing, retail, financial services, transport, telecommunications, healthcare, and energy and utilities industries; the public sectors; and services providers. The company was founded in 1923 and is headquartered in Tokyo, Japan.

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.