Seek Returns logo

ADSK vs. CTSH: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at ADSK and CTSH, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolADSKCTSH
Company NameAutodesk, Inc.Cognizant Technology Solutions Corporation
CountryUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustrySoftwareIT Services
Market Capitalization61.75 billion USD34.43 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateJune 28, 1985June 19, 1998
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of ADSK and CTSH by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

ADSK vs. CTSH: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolADSKCTSH
5-Day Price Return1.72%1.61%
13-Week Price Return-2.46%-13.58%
26-Week Price Return-4.89%-21.31%
52-Week Price Return14.94%-7.24%
Month-to-Date Return-4.78%-1.77%
Year-to-Date Return-2.35%-8.34%
10-Day Avg. Volume1.52M4.07M
3-Month Avg. Volume1.50M3.71M
3-Month Volatility25.69%21.70%
Beta1.500.97

Profitability

Return on Equity (TTM)

ADSK

39.19%

Software Industry

Max
59.01%
Q3
21.98%
Median
7.15%
Q1
-11.12%
Min
-51.24%

In the upper quartile for the Software industry, ADSK’s Return on Equity of 39.19% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

CTSH

16.50%

IT Services Industry

Max
29.51%
Q3
16.98%
Median
13.47%
Q1
7.93%
Min
-3.97%

CTSH’s Return on Equity of 16.50% is on par with the norm for the IT Services industry, indicating its profitability relative to shareholder equity is typical for the sector.

ADSK vs. CTSH: A comparison of their Return on Equity (TTM) against their respective Software and IT Services industry benchmarks.

Net Profit Margin (TTM)

ADSK

15.94%

Software Industry

Max
48.14%
Q3
18.23%
Median
5.60%
Q1
-9.22%
Min
-49.36%

ADSK’s Net Profit Margin of 15.94% is aligned with the median group of its peers in the Software industry. This indicates its ability to convert revenue into profit is typical for the sector.

CTSH

11.89%

IT Services Industry

Max
19.82%
Q3
11.49%
Median
6.67%
Q1
3.61%
Min
-4.62%

A Net Profit Margin of 11.89% places CTSH in the upper quartile for the IT Services industry, signifying strong profitability and more effective cost management than most of its peers.

ADSK vs. CTSH: A comparison of their Net Profit Margin (TTM) against their respective Software and IT Services industry benchmarks.

Operating Profit Margin (TTM)

ADSK

20.29%

Software Industry

Max
57.34%
Q3
20.60%
Median
7.84%
Q1
-8.72%
Min
-51.37%

ADSK’s Operating Profit Margin of 20.29% is around the midpoint for the Software industry, indicating that its efficiency in managing core business operations is typical for the sector.

CTSH

15.42%

IT Services Industry

Max
21.69%
Q3
14.50%
Median
10.06%
Q1
6.98%
Min
0.06%

An Operating Profit Margin of 15.42% places CTSH in the upper quartile for the IT Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ADSK vs. CTSH: A comparison of their Operating Profit Margin (TTM) against their respective Software and IT Services industry benchmarks.

Profitability at a Glance

SymbolADSKCTSH
Return on Equity (TTM)39.19%16.50%
Return on Assets (TTM)9.75%12.14%
Net Profit Margin (TTM)15.94%11.89%
Operating Profit Margin (TTM)20.29%15.42%
Gross Profit Margin (TTM)90.53%34.18%

Financial Strength

Current Ratio (MRQ)

ADSK

0.65

Software Industry

Max
3.83
Q3
2.31
Median
1.45
Q1
1.03
Min
0.24

ADSK’s Current Ratio of 0.65 falls into the lower quartile for the Software industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

CTSH

2.41

IT Services Industry

Max
2.42
Q3
1.81
Median
1.47
Q1
1.09
Min
0.44

CTSH’s Current Ratio of 2.41 is in the upper quartile for the IT Services industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

ADSK vs. CTSH: A comparison of their Current Ratio (MRQ) against their respective Software and IT Services industry benchmarks.

Debt-to-Equity Ratio (MRQ)

ADSK

0.87

Software Industry

Max
2.14
Q3
0.90
Median
0.29
Q1
0.00
Min
0.00

ADSK’s Debt-to-Equity Ratio of 0.87 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

CTSH

0.04

IT Services Industry

Max
2.33
Q3
1.17
Median
0.54
Q1
0.15
Min
0.00

Falling into the lower quartile for the IT Services industry, CTSH’s Debt-to-Equity Ratio of 0.04 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

ADSK vs. CTSH: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Software and IT Services industry benchmarks.

Interest Coverage Ratio (TTM)

ADSK

18.20

Software Industry

Max
67.02
Q3
19.86
Median
0.70
Q1
-12.50
Min
-53.00

ADSK’s Interest Coverage Ratio of 18.20 is positioned comfortably within the norm for the Software industry, indicating a standard and healthy capacity to cover its interest payments.

CTSH

100.81

IT Services Industry

Max
144.50
Q3
84.49
Median
13.76
Q1
2.59
Min
-28.13

CTSH’s Interest Coverage Ratio of 100.81 is in the upper quartile for the IT Services industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

ADSK vs. CTSH: A comparison of their Interest Coverage Ratio (TTM) against their respective Software and IT Services industry benchmarks.

Financial Strength at a Glance

SymbolADSKCTSH
Current Ratio (MRQ)0.652.41
Quick Ratio (MRQ)0.522.41
Debt-to-Equity Ratio (MRQ)0.870.04
Interest Coverage Ratio (TTM)18.20100.81

Growth

Revenue Growth

ADSK vs. CTSH: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

ADSK vs. CTSH: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

ADSK

0.00%

Software Industry

Max
0.08%
Q3
0.03%
Median
0.00%
Q1
0.00%
Min
0.00%

ADSK currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

CTSH

1.75%

IT Services Industry

Max
2.80%
Q3
1.74%
Median
0.62%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 1.75%, CTSH offers a more attractive income stream than most of its peers in the IT Services industry, signaling a strong commitment to shareholder returns.

ADSK vs. CTSH: A comparison of their Dividend Yield (TTM) against their respective Software and IT Services industry benchmarks.

Dividend Payout Ratio (TTM)

ADSK

0.00%

Software Industry

Max
1.32%
Q3
0.53%
Median
0.00%
Q1
0.00%
Min
0.00%

ADSK has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

CTSH

24.92%

IT Services Industry

Max
147.75%
Q3
63.58%
Median
24.63%
Q1
0.00%
Min
0.00%

CTSH’s Dividend Payout Ratio of 24.92% is within the typical range for the IT Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ADSK vs. CTSH: A comparison of their Dividend Payout Ratio (TTM) against their respective Software and IT Services industry benchmarks.

Dividend at a Glance

SymbolADSKCTSH
Dividend Yield (TTM)0.00%1.75%
Dividend Payout Ratio (TTM)0.00%24.92%

Valuation

Price-to-Earnings Ratio (TTM)

ADSK

61.00

Software Industry

Max
149.35
Q3
100.21
Median
47.97
Q1
26.77
Min
11.68

ADSK’s P/E Ratio of 61.00 is within the middle range for the Software industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

CTSH

14.21

IT Services Industry

Max
41.55
Q3
31.54
Median
23.25
Q1
18.12
Min
6.57

In the lower quartile for the IT Services industry, CTSH’s P/E Ratio of 14.21 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

ADSK vs. CTSH: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Software and IT Services industry benchmarks.

Price-to-Sales Ratio (TTM)

ADSK

9.73

Software Industry

Max
25.24
Q3
13.52
Median
8.15
Q1
4.87
Min
0.98

ADSK’s P/S Ratio of 9.73 aligns with the market consensus for the Software industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

CTSH

1.69

IT Services Industry

Max
6.61
Q3
4.37
Median
2.02
Q1
1.20
Min
0.19

CTSH’s P/S Ratio of 1.69 aligns with the market consensus for the IT Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ADSK vs. CTSH: A comparison of their Price-to-Sales Ratio (TTM) against their respective Software and IT Services industry benchmarks.

Price-to-Book Ratio (MRQ)

ADSK

22.42

Software Industry

Max
30.95
Q3
14.91
Median
7.75
Q1
3.60
Min
0.38

ADSK’s P/B Ratio of 22.42 is in the upper tier for the Software industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

CTSH

2.52

IT Services Industry

Max
11.19
Q3
6.38
Median
3.47
Q1
2.31
Min
0.96

CTSH’s P/B Ratio of 2.52 is within the conventional range for the IT Services industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

ADSK vs. CTSH: A comparison of their Price-to-Book Ratio (MRQ) against their respective Software and IT Services industry benchmarks.

Valuation at a Glance

SymbolADSKCTSH
Price-to-Earnings Ratio (TTM)61.0014.21
Price-to-Sales Ratio (TTM)9.731.69
Price-to-Book Ratio (MRQ)22.422.52
Price-to-Free Cash Flow Ratio (TTM)38.5615.17