Datasea (NASDAQ:DTSS) and Cognizant Technology Solutions (NASDAQ:CTSH) Financial Contrast

Datasea (NASDAQ:DTSS) and Cognizant Technology Solutions (NASDAQ:CTSH) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, valuation, earnings, institutional ownership and profitability.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Datasea	$23.98 million	0.58	-$11.38 million	N/A	N/A
Cognizant Technology Solutions	$19.74 billion	1.73	$2.24 billion	$4.92	14.23

Cognizant Technology Solutions has higher revenue and earnings than Datasea.

Institutional and Insider Ownership

82.1% of Datasea shares are owned by institutional investors. Comparatively, 92.4% of Cognizant Technology Solutions shares are owned by institutional investors. 50.7% of Datasea shares are owned by insiders. Comparatively, 0.3% of Cognizant Technology Solutions shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Datasea	-18.24%	-418.18%	-176.10%
Cognizant Technology Solutions	11.89%	16.77%	12.34%

Risk & Volatility

Datasea has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500. Comparatively, Cognizant Technology Solutions has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Datasea and Cognizant Technology Solutions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Datasea	0	0	0	0	0.00
Cognizant Technology Solutions	0	12	6	0	2.33

Cognizant Technology Solutions has a consensus price target of $86.5625, indicating a potential upside of 23.66%. Given Cognizant Technology Solutions’ stronger consensus rating and higher possible upside, analysts clearly believe Cognizant Technology Solutions is more favorable than Datasea.

Summary

Cognizant Technology Solutions beats Datasea on 11 of the 12 factors compared between the two stocks.

About Datasea

Datasea Inc., through its subsidiaries, provides technology and information systems in the People's Republic of China. The company provides smart city solutions and 5G messaging applications. It also offers its smart security solutions primarily to schools, tourist or scenic attractions, and public communities. In addition, the company provides intelligent acoustics products, which include ultrasonic air sterilizer, air purification and deodorization, and other products. The company was formerly known as Rose Rock, Inc. and changed its name to Datasea Inc. in October 2015. Datasea Inc. was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.

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.