ScanTech AI Systems (NASDAQ:STAI – Get Free Report) and Cognizant Technology Solutions (NASDAQ:CTSH – Get Free Report) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, dividends, risk, profitability, analyst recommendations, earnings and institutional ownership.
Profitability
This table compares ScanTech AI Systems and Cognizant Technology Solutions’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ScanTech AI Systems | -477.09% | -11.25% | 209.23% |
| Cognizant Technology Solutions | 10.56% | 17.17% | 12.74% |
Valuation & Earnings
This table compares ScanTech AI Systems and Cognizant Technology Solutions”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ScanTech AI Systems | $1.88 million | 0.39 | -$23.07 million | ($9.20) | -0.01 |
| Cognizant Technology Solutions | $21.11 billion | 1.33 | $2.23 billion | $4.55 | 12.93 |
Cognizant Technology Solutions has higher revenue and earnings than ScanTech AI Systems. ScanTech AI Systems 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.
Institutional & Insider Ownership
74.0% of ScanTech AI Systems shares are owned by institutional investors. Comparatively, 92.4% of Cognizant Technology Solutions shares are owned by institutional investors. 2.3% of ScanTech AI Systems shares are owned by insiders. Comparatively, 0.3% of Cognizant Technology Solutions shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Risk and Volatility
ScanTech AI Systems has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500. Comparatively, Cognizant Technology Solutions has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent recommendations for ScanTech AI Systems and Cognizant Technology Solutions, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ScanTech AI Systems | 1 | 0 | 0 | 0 | 1.00 |
| Cognizant Technology Solutions | 0 | 13 | 9 | 0 | 2.41 |
Cognizant Technology Solutions has a consensus target price of $84.68, suggesting a potential upside of 44.00%. Given Cognizant Technology Solutions’ stronger consensus rating and higher probable upside, analysts clearly believe Cognizant Technology Solutions is more favorable than ScanTech AI Systems.
Summary
Cognizant Technology Solutions beats ScanTech AI Systems on 12 of the 14 factors compared between the two stocks.
About ScanTech AI Systems
Scantech AI Systems, Inc. engages in the innovation, emerging technology, and machine learning expertise. ScanTech specializes in developing advanced screening technology that provides the most accurate and fastest detection of prohibited materials. The company was founded on September 5, 2023 and is headquartered in Buford, GA.
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.
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