Cognizant Technology Solutions (NASDAQ:CTSH) versus TSS (NASDAQ:TSSI) Head-To-Head Comparison

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for TSS and Cognizant Technology Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TSS	0	2	1	0	2.33
Cognizant Technology Solutions	1	13	10	0	2.38

TSS presently has a consensus target price of $14.00, indicating a potential upside of 34.74%. Cognizant Technology Solutions has a consensus target price of $64.43, indicating a potential upside of 12.61%. Given TSS’s higher probable upside, research analysts clearly believe TSS is more favorable than Cognizant Technology Solutions.

Risk & Volatility

TSS has a beta of 1.98, suggesting that its stock price is 98% more volatile than the S&P 500. Comparatively, Cognizant Technology Solutions has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500.

Valuation and Earnings

This table compares TSS and Cognizant Technology Solutions”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TSS	$245.72 million	1.19	$15.12 million	$0.48	21.65
Cognizant Technology Solutions	$21.11 billion	1.22	$2.23 billion	$4.65	12.31

Cognizant Technology Solutions has higher revenue and earnings than TSS. Cognizant Technology Solutions is trading at a lower price-to-earnings ratio than TSS, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TSS	7.44%	19.22%	8.46%
Cognizant Technology Solutions	10.26%	17.70%	12.81%

Institutional & Insider Ownership

92.4% of Cognizant Technology Solutions shares are held by institutional investors. 16.0% of TSS shares are held by company insiders. Comparatively, 0.4% of Cognizant Technology Solutions shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Cognizant Technology Solutions beats TSS on 9 of the 14 factors compared between the two stocks.

About TSS

TSS, Inc. offers planning, design, engineering, construction management, commissioning and maintenance services. It provides these services primarily for specialized facilities such as data centers, communications rooms, call centers, laboratories, trading floors, network operations centers, medical facilities and similar environments. TSS Inc., formerly known as Fortress International Group, Inc., is based in Columbia, United States.

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.