Persistent Systems vs Cognizant Technology Solutions Which Offers More Value?

Persistent Systems and Cognizant Technology Solutions are two prominent players in the IT services industry, both known for their innovative solutions and strong client base. While Persistent Systems focuses on providing software development and digital transformation services, Cognizant Technology Solutions offers a wide range of IT consulting and outsourcing services. Investors often compare the stocks of these two companies, analyzing factors such as revenue growth, profitability, and market share to make informed investment decisions.

Persistent Systems or Cognizant Technology Solutions?

When comparing Persistent Systems and Cognizant Technology Solutions, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Persistent Systems and Cognizant Technology Solutions.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Persistent Systems has a dividend yield of 0.4%, while Cognizant Technology Solutions has a dividend yield of 1.5%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Persistent Systems reports a 5-year dividend growth of 30.60% year and a payout ratio of 32.04%. On the other hand, Cognizant Technology Solutions reports a 5-year dividend growth of 3.01% year and a payout ratio of 26.47%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Persistent Systems P/E ratio at 80.58 and Cognizant Technology Solutions's P/E ratio at 17.63. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Persistent Systems P/B ratio is 17.85 while Cognizant Technology Solutions's P/B ratio is 2.75.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Persistent Systems has seen a 5-year revenue growth of 1.98%, while Cognizant Technology Solutions's is 0.38%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Persistent Systems's ROE at 23.71% and Cognizant Technology Solutions's ROE at 16.36%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹6345.00 for Persistent Systems and $79.49 for Cognizant Technology Solutions. Over the past year, Persistent Systems's prices ranged from ₹3232.05 to ₹6509.00, with a yearly change of 101.39%. Cognizant Technology Solutions's prices fluctuated between $63.79 and $82.41, with a yearly change of 29.19%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.