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

Cognizant Technology Solutions Corporation and Fiserv, Inc. are both Information Technology Services companies. Fiserv, Inc. is the larger, with a market value of $33.4B against $29.8B — 1.1× the size. Fiserv, Inc. has negative trailing earnings, so its P/E is not meaningful; Cognizant Technology Solutions Corporation trades at 12.1×. Cognizant Technology Solutions Corporation grew revenue faster over the last twelve months: 4.96% against −1.71%. Cognizant Technology Solutions Corporation has the higher net margin (11.8% vs −18.9%) and the higher return on invested capital (14.6% vs −2.98%). Across the 21 metrics below, Cognizant Technology Solutions Corporation leads on 14 and Fiserv, Inc. on 7.

Valuation

Metric CTSH FISV Information Technology Services median
P/E 12.11 n/m 17.60
P/S 1.37 1.61 1.16
P/B 2.03 1,395.63 1.93
Price to free cash flow 12.66 10.61 13.52
EV/EBITDA 7.45 7.52 9.79
EV/Sales 1.37 2.89 1.35
Earnings yield 8.26% (11.80%) 2.99%
Free cash flow yield 7.90% 9.43% 0.07%

Profitability

Metric CTSH FISV Information Technology Services median
Gross margin 33.42% 53.91% 30.04%
Operating margin 15.72% (10.91%) 1.67%
Net margin 11.75% (18.90%) 0.79%
Free cash flow margin 10.79% 15.18% 0.00%
Return on equity 17.37% (31.25%) 0.00%
Return on assets 12.41% (5.18%) 0.00%
Return on invested capital 14.61% (2.98%) 0.00%

Growth

Metric CTSH FISV Information Technology Services median
Revenue growth (TTM) 4.96% (1.71%) 4.85%
EPS growth (last fiscal year) 1.11% 17.84% 3.57%
Revenue growth, 5-year CAGR 4.86% 7.37% 6.93%
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 1.28 0.31
Current ratio 2.22 1.04 1.70
Net debt to EBITDA (0.35) 3.12 0.55

Dividend

Metric CTSH FISV Information Technology Services median
Dividend yield 1.95% — 1.95%
Payout ratio 0.24 — 0.29

Size

Metric CTSH FISV Information Technology Services median
Market cap 29.75b 33.36b 1.11b

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