Cognizant Technology Solutions Corporation (CTSH) vs Fiserv, Inc. (FISV)

Cognizant Technology Solutions Corporation and Fiserv, Inc. are both Information Technology Services companies. Cognizant Technology Solutions Corporation and Fiserv, Inc. are of similar size ($25.6B and $24.5B). Fiserv, Inc. trades at the lower P/E: 8.9× against 12.3×. Cognizant Technology Solutions Corporation grew revenue faster over the last twelve months: 5.64% against −1.17%. Fiserv, Inc. has the higher net margin (13.4% vs 10.3%) and the lower return on invested capital (5.38% vs 14.4%). Across the 22 metrics below, Fiserv, Inc. leads on 14 and Cognizant Technology Solutions Corporation on 8.

Valuation

Metric CTSH FISV Information Technology Services median
P/E 12.28 8.92 14.63
P/S 1.23 1.19 1.13
P/B 1.84 0.92 2.10
Price to free cash flow 10.26 6.02 10.11
EV/EBITDA 6.79 6.52 8.56
EV/Sales 1.25 2.49 1.20
Earnings yield 8.14% 11.21% 4.56%
Free cash flow yield 9.74% 16.61% 4.37%

Profitability

Metric CTSH FISV Information Technology Services median
Gross margin 33.44% 55.37% 31.05%
Operating margin 15.88% 22.33% 3.30%
Net margin 10.26% 13.42% 2.09%
Free cash flow margin 12.00% 19.71% 0.00%
Return on equity 14.92% 10.63% 4.12%
Return on assets 10.83% 3.45% 0.61%
Return on invested capital 14.38% 5.38% 0.57%

Growth

Metric CTSH FISV Information Technology Services median
Revenue growth (TTM) 5.64% (1.17%) 7.12%
EPS growth (last fiscal year) 1.11% 17.84% —
Revenue growth, 5-year CAGR 4.86% 7.37% 7.71%
Net income growth, 5-year CAGR 9.88% 29.43% 0.00%

Health

Metric CTSH FISV Information Technology Services median
Debt to equity 0.11 1.04 0.45
Current ratio 2.18 1.04 1.66
Net debt to EBITDA (0.35) 3.12 0.44

Dividend

Metric CTSH FISV Information Technology Services median
Dividend yield 1.57% — 1.21%
Payout ratio 0.26 0.00 0.00

Size

Metric CTSH FISV Information Technology Services median
Market cap 25.59b 24.46b 1.36b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack