Cognizant Technology Solutions Corporation (CTSH) vs Fidelity National Information Services, Inc. (FIS)

Cognizant Technology Solutions Corporation and Fidelity National Information Services, Inc. are both Information Technology Services companies. Cognizant Technology Solutions Corporation is the larger, with a market value of $25.6B against $18.0B — 1.4× the size. Fidelity National Information Services, Inc. trades at the lower P/E: 5.4× against 12.3×. Fidelity National Information Services, Inc. grew revenue faster over the last twelve months: 18.3% against 5.64%. Fidelity National Information Services, Inc. has the higher net margin (27.6% vs 10.3%) and the lower return on invested capital (3.71% vs 14.4%). Both pay a dividend; Fidelity National Information Services, Inc. yields more (3.39% vs 1.57%). Across the 23 metrics below, Fidelity National Information Services, Inc. leads on 12 and Cognizant Technology Solutions Corporation on 11.

Valuation

Metric CTSH FIS Information Technology Services median
P/E 12.28 5.41 14.63
P/S 1.23 1.50 1.13
P/B 1.84 1.14 2.10
Price to free cash flow 10.26 9.51 10.11
EV/EBITDA 6.79 8.23 8.56
EV/Sales 1.25 2.83 1.20
Earnings yield 8.14% 18.47% 4.56%
Free cash flow yield 9.74% 10.51% 4.37%

Profitability

Metric CTSH FIS Information Technology Services median
Gross margin 33.44% 35.96% 31.05%
Operating margin 15.88% 15.70% 3.30%
Net margin 10.26% 27.64% 2.09%
Free cash flow margin 12.00% 15.74% 0.00%
Return on equity 14.92% 22.32% 4.12%
Return on assets 10.83% 8.70% 0.61%
Return on invested capital 14.38% 3.71% 0.57%

Growth

Metric CTSH FIS Information Technology Services median
Revenue growth (TTM) 5.64% 18.26% 7.12%
EPS growth (last fiscal year) 1.11% (72.03%) —
Revenue growth, 5-year CAGR 4.86% (3.18%) 7.71%
Net income growth, 5-year CAGR 9.88% 19.31% 0.00%

Health

Metric CTSH FIS Information Technology Services median
Debt to equity 0.11 1.06 0.45
Current ratio 2.18 0.53 1.66
Net debt to EBITDA (0.35) 2.66 0.44

Dividend

Metric CTSH FIS Information Technology Services median
Dividend yield 1.57% 3.39% 1.21%
Payout ratio 0.26 1.18 0.00

Size

Metric CTSH FIS Information Technology Services median
Market cap 25.59b 18.04b 1.36b

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