Evolv Technologies (NASDAQ:EVLV) & Cognizant Technology Solutions (NASDAQ:CTSH) Head-To-Head Analysis

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

Insider and Institutional Ownership

92.4% of Cognizant Technology Solutions shares are owned by institutional investors. Comparatively, 66.7% of Evolv Technologies shares are owned by institutional investors. 0.4% of Cognizant Technology Solutions shares are owned by insiders. Comparatively, 5.2% of Evolv Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Cognizant Technology Solutions and Evolv Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cognizant Technology Solutions	$21.41 billion	0.99	$2.23 billion	$4.60	9.73
Evolv Technologies	$145.90 million	6.98	-$33.14 million	($0.23)	-24.61

Cognizant Technology Solutions has higher revenue and earnings than Evolv Technologies. Evolv Technologies 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cognizant Technology Solutions	10.41%	17.50%	12.94%
Evolv Technologies	-22.75%	-33.53%	-12.22%

Analyst Ratings

This is a breakdown of current recommendations for Cognizant Technology Solutions and Evolv Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cognizant Technology Solutions	0	14	10	0	2.42
Evolv Technologies	1	1	3	0	2.40

Cognizant Technology Solutions currently has a consensus target price of $64.26, indicating a potential upside of 43.54%. Evolv Technologies has a consensus target price of $9.67, indicating a potential upside of 70.79%. Given Evolv Technologies’ higher probable upside, analysts clearly believe Evolv Technologies is more favorable than Cognizant Technology Solutions.

Risk and Volatility

Cognizant Technology Solutions has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, Evolv Technologies has a beta of 1.77, indicating that its share price is 77% more volatile than the S&P 500.

Summary

Cognizant Technology Solutions beats Evolv Technologies on 10 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 Evolv Technologies

Evolv Technologies Holdings, Inc. provides artificial intelligence (AI)-based weapons detection for security screening in the United States and internationally. Its products include Evolv Express, a touchless security screening system designed to detect firearms, improvised explosive devices, and tactical knives; and Evolv Insights that provides self-serve access, insights regarding visitor flow and arrival curves, location specific performance, system detection performance, and alarm statistics. The company was founded in 2013 and is headquartered in Waltham, Massachusetts.