Broadridge Financial Solutions, Inc. (BR) vs Cognizant Technology Solutions Corporation (CTSH)

Broadridge Financial Solutions, Inc. and Cognizant Technology Solutions Corporation are both Information Technology Services companies. Cognizant Technology Solutions Corporation is the larger, with a market value of $25.6B against $19.2B — 1.3× the size. Cognizant Technology Solutions Corporation trades at the lower P/E: 12.3× against 16.9×. Broadridge Financial Solutions, Inc. grew revenue faster over the last twelve months: 8.53% against 5.64%. Broadridge Financial Solutions, Inc. has the higher net margin (15.0% vs 10.3%) and the lower return on invested capital (14.3% vs 14.4%). Both pay a dividend; Broadridge Financial Solutions, Inc. yields more (1.59% vs 1.57%). Across the 23 metrics below, Cognizant Technology Solutions Corporation leads on 13 and Broadridge Financial Solutions, Inc. on 10.

Valuation

Metric BR CTSH Information Technology Services median
P/E 16.90 12.28 14.63
P/S 2.55 1.23 1.13
P/B 6.71 1.84 2.10
Price to free cash flow 15.97 10.26 10.11
EV/EBITDA 12.38 6.79 8.56
EV/Sales 3.00 1.25 1.20
Earnings yield 5.92% 8.14% 4.56%
Free cash flow yield 6.26% 9.74% 4.37%

Profitability

Metric BR CTSH Information Technology Services median
Gross margin 31.78% 33.44% 31.05%
Operating margin 17.40% 15.88% 3.30%
Net margin 15.04% 10.26% 2.09%
Free cash flow margin 16.49% 12.00% 0.00%
Return on equity 40.91% 14.92% 4.12%
Return on assets 12.86% 10.83% 0.61%
Return on invested capital 14.28% 14.38% 0.57%

Growth

Metric BR CTSH Information Technology Services median
Revenue growth (TTM) 8.53% 5.64% 7.12%
EPS growth (last fiscal year) 35.21% 1.11% —
Revenue growth, 5-year CAGR 8.41% 4.86% 7.71%
Net income growth, 5-year CAGR 15.48% 9.88% 0.00%

Health

Metric BR CTSH Information Technology Services median
Debt to equity 1.15 0.11 0.45
Current ratio 1.24 2.18 1.66
Net debt to EBITDA 1.58 (0.35) 0.44

Dividend

Metric BR CTSH Information Technology Services median
Dividend yield 1.59% 1.57% 1.21%
Payout ratio 0.55 0.26 0.00

Size

Metric BR CTSH Information Technology Services median
Market cap 19.15b 25.59b 1.36b

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