Head-To-Head Review: Cognizant Technology Solutions (NASDAQ:CTSH) and Taboola.com (NASDAQ:TBLA)

Taboola.com (NASDAQ:TBLA) and Cognizant Technology Solutions (NASDAQ:CTSH) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Taboola.com	1.34%	8.12%	4.92%
Cognizant Technology Solutions	10.20%	17.00%	12.61%

Risk and Volatility

Taboola.com has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, Cognizant Technology Solutions has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.

Insider and Institutional Ownership

42.9% of Taboola.com shares are held by institutional investors. Comparatively, 92.4% of Cognizant Technology Solutions shares are held by institutional investors. 24.7% of Taboola.com shares are held by insiders. Comparatively, 0.3% of Cognizant Technology Solutions shares are held 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.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Taboola.com	0	4	4	0	2.50
Cognizant Technology Solutions	0	12	7	0	2.37

Taboola.com currently has a consensus target price of $4.50, suggesting a potential upside of 11.66%. Cognizant Technology Solutions has a consensus target price of $85.44, suggesting a potential upside of 2.00%. Given Taboola.com’s stronger consensus rating and higher possible upside, research analysts plainly believe Taboola.com is more favorable than Cognizant Technology Solutions.

Earnings & Valuation

This table compares Taboola.com and Cognizant Technology Solutions”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Taboola.com	$1.77 billion	0.66	-$3.76 million	$0.08	50.38
Cognizant Technology Solutions	$19.74 billion	2.05	$2.24 billion	$4.31	19.43

Cognizant Technology Solutions has higher revenue and earnings than Taboola.com. Cognizant Technology Solutions is trading at a lower price-to-earnings ratio than Taboola.com, indicating that it is currently the more affordable of the two stocks.

Summary

Cognizant Technology Solutions beats Taboola.com on 9 of the 14 factors compared between the two stocks.

About Taboola.com

Taboola.com Ltd., together with its subsidiaries, operates an artificial intelligence-based algorithmic engine platform in Israel, the United States, the United Kingdom, Germany, and internationally. It offers Taboola, a platform that partners with websites, devices, and mobile apps to recommend editorial content and advertisements on the open web to users. The company was incorporated in 2006 and is headquartered in New York, New York.

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.