Comparing Cognizant Technology Solutions (NASDAQ:CTSH) & ASGN (NYSE:ASGN)

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cognizant Technology Solutions	0	13	8	0	2.38
ASGN	3	3	2	0	1.88

Cognizant Technology Solutions currently has a consensus price target of $88.22, suggesting a potential upside of 4.80%. ASGN has a consensus price target of $49.67, suggesting a potential downside of 2.72%. Given Cognizant Technology Solutions’ stronger consensus rating and higher probable upside, research analysts clearly believe Cognizant Technology Solutions is more favorable than ASGN.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cognizant Technology Solutions	$20.86 billion	1.95	$2.24 billion	$4.31	19.53
ASGN	$4.10 billion	0.53	$175.20 million	$2.97	17.19

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

Volatility & Risk

Cognizant Technology Solutions has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500. Comparatively, ASGN has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.

Institutional & Insider Ownership

92.4% of Cognizant Technology Solutions shares are held by institutional investors. Comparatively, 95.4% of ASGN shares are held by institutional investors. 0.3% of Cognizant Technology Solutions shares are held by company insiders. Comparatively, 3.4% of ASGN shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cognizant Technology Solutions	10.20%	17.00%	12.61%
ASGN	3.28%	11.42%	5.68%

Summary

Cognizant Technology Solutions beats ASGN on 12 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 ASGN

ASGN Incorporated engages in the provision of information technology (IT) services and solutions in the technology, digital, and creative fields for commercial and government sectors in the United States, Canada, and Europe. It operates through two segments: Commercial and Federal Government. The Commercial Segment provides consulting, creative digital marketing, and permanent placement services primarily to enterprise clients. This segment also offers workforce mobilization, modern enterprise, and digital innovation IT consulting services; and cloud, data and analytics, and digital transformation solutions. The Federal Government Segment provides mission-critical solutions to the department of defense, intelligence communities, and federal civilian agencies. This segment offers cloud, cybersecurity, artificial intelligence, machine learning, application and IT modernization, and science and engineering solutions. The company was formerly known as On Assignment, Inc. and changed its name to ASGN Incorporated in April 2018. ASGN Incorporated was founded in 1985 and is based in Glen Allen, Virginia.