Seek Returns logo

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

Updated on

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

Company Overview

CTSH’s market capitalization of 39.92 billion USD is significantly greater than ASTS’s 15.96 billion USD, highlighting its more substantial market valuation.

ASTS’s beta of 2.02 points to significantly higher volatility compared to CTSH (beta: 0.98), suggesting ASTS has greater potential for both gains and losses relative to market movements.

SymbolASTSCTSH
Company NameAST SpaceMobile, Inc.Cognizant Technology Solutions Corporation
CountryUSUS
SectorTechnologyTechnology
IndustryCommunication EquipmentInformation Technology Services
CEOAbel AvellanRavi Kumar Singisetti
Price45.6 USD80.98 USD
Market Cap15.96 billion USD39.92 billion USD
Beta2.020.98
ExchangeNASDAQNASDAQ
IPO DateNovember 1, 2019June 19, 1998
ADRNoNo

Historical Performance

This chart compares the performance of ASTS 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.

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

Profitability

Return on Equity

ASTS

-76.72%

Communication Equipment Industry

Max
30.07%
Q3
8.07%
Median
1.84%
Q1
-11.93%
Min
-31.65%

ASTS has a negative Return on Equity of -76.72%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

CTSH

16.35%

Information Technology Services Industry

Max
47.24%
Q3
23.27%
Median
12.85%
Q1
2.22%
Min
-26.63%

CTSH’s Return on Equity of 16.35% is on par with the norm for the Information Technology Services industry, indicating its profitability relative to shareholder equity is typical for the sector.

ASTS vs. CTSH: A comparison of their ROE against their respective Communication Equipment and Information Technology Services industry benchmarks.

Return on Invested Capital

ASTS

-19.41%

Communication Equipment Industry

Max
11.59%
Q3
6.61%
Median
2.97%
Q1
-2.58%
Min
-13.18%

ASTS has a negative Return on Invested Capital of -19.41%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.

CTSH

13.94%

Information Technology Services Industry

Max
28.29%
Q3
13.19%
Median
7.24%
Q1
0.23%
Min
-18.82%

In the upper quartile for the Information Technology Services industry, CTSH’s Return on Invested Capital of 13.94% signifies a highly effective use of its capital to generate profits when compared to its peers.

ASTS vs. CTSH: A comparison of their ROIC against their respective Communication Equipment and Information Technology Services industry benchmarks.

Net Profit Margin

ASTS

-7,033.20%

Communication Equipment Industry

Max
23.65%
Q3
9.21%
Median
2.46%
Q1
-8.56%
Min
-29.87%

ASTS has a negative Net Profit Margin of -7,033.20%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

CTSH

11.73%

Information Technology Services Industry

Max
20.47%
Q3
11.62%
Median
5.97%
Q1
1.89%
Min
-4.62%

A Net Profit Margin of 11.73% places CTSH in the upper quartile for the Information Technology Services industry, signifying strong profitability and more effective cost management than most of its peers.

ASTS vs. CTSH: A comparison of their Net Profit Margin against their respective Communication Equipment and Information Technology Services industry benchmarks.

Operating Profit Margin

ASTS

-5,397.45%

Communication Equipment Industry

Max
30.72%
Q3
11.64%
Median
5.79%
Q1
-2.28%
Min
-18.20%

ASTS has a negative Operating Profit Margin of -5,397.45%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

CTSH

15.33%

Information Technology Services Industry

Max
29.42%
Q3
14.75%
Median
8.92%
Q1
2.62%
Min
-11.92%

An Operating Profit Margin of 15.33% places CTSH in the upper quartile for the Information Technology Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ASTS vs. CTSH: A comparison of their Operating Margin against their respective Communication Equipment and Information Technology Services industry benchmarks.

Profitability at a Glance

SymbolASTSCTSH
Return on Equity (TTM)-76.72%16.35%
Return on Assets (TTM)-23.81%11.80%
Return on Invested Capital (TTM)-19.41%13.94%
Net Profit Margin (TTM)-7033.20%11.73%
Operating Profit Margin (TTM)-5397.45%15.33%
Gross Profit Margin (TTM)-486.80%32.95%

Financial Strength

Current Ratio

ASTS

10.62

Communication Equipment Industry

Max
3.40
Q3
2.59
Median
1.62
Q1
1.32
Min
0.86

ASTS’s Current Ratio of 10.62 is exceptionally high, placing it well outside the typical range for the Communication Equipment industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.

CTSH

2.22

Information Technology Services Industry

Max
3.41
Q3
2.37
Median
1.58
Q1
1.20
Min
0.00

CTSH’s Current Ratio of 2.22 aligns with the median group of the Information Technology Services industry, indicating that its short-term liquidity is in line with its sector peers.

ASTS vs. CTSH: A comparison of their Current Ratio against their respective Communication Equipment and Information Technology Services industry benchmarks.

Debt-to-Equity Ratio

ASTS

0.02

Communication Equipment Industry

Max
1.82
Q3
1.00
Median
0.53
Q1
0.20
Min
0.02

Falling into the lower quartile for the Communication Equipment industry, ASTS’s Debt-to-Equity Ratio of 0.02 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

CTSH

0.08

Information Technology Services Industry

Max
2.63
Q3
1.16
Median
0.48
Q1
0.09
Min
0.01

Falling into the lower quartile for the Information Technology Services industry, CTSH’s Debt-to-Equity Ratio of 0.08 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

ASTS vs. CTSH: A comparison of their D/E Ratio against their respective Communication Equipment and Information Technology Services industry benchmarks.

Interest Coverage Ratio

ASTS

-52.83

Communication Equipment Industry

Max
16.12
Q3
9.22
Median
2.52
Q1
-0.75
Min
-12.07

ASTS has a negative Interest Coverage Ratio of -52.83. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

CTSH

55.98

Information Technology Services Industry

Max
17.52
Q3
10.04
Median
4.66
Q1
0.80
Min
-10.50

With an Interest Coverage Ratio of 55.98, CTSH demonstrates a superior capacity to service its debt, placing it well above the typical range for the Information Technology Services industry. This stems from either robust earnings or a conservative debt load.

ASTS vs. CTSH: A comparison of their Interest Coverage against their respective Communication Equipment and Information Technology Services industry benchmarks.

Financial Strength at a Glance

SymbolASTSCTSH
Current Ratio (TTM)10.622.22
Quick Ratio (TTM)10.622.22
Debt-to-Equity Ratio (TTM)0.020.08
Debt-to-Asset Ratio (TTM)0.010.06
Net Debt-to-EBITDA Ratio (TTM)1.82-0.22
Interest Coverage Ratio (TTM)-52.8355.98

Growth

The following charts compare key year-over-year (YoY) growth metrics for ASTS and CTSH. These metrics are based on the companies’ annual financial reports.

Revenue Growth

ASTS vs. CTSH: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

ASTS vs. CTSH: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

ASTS vs. CTSH: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

ASTS

0.00%

Communication Equipment Industry

Max
4.72%
Q3
0.38%
Median
0.00%
Q1
0.00%
Min
0.00%

ASTS 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

1.51%

Information Technology Services Industry

Max
16.57%
Q3
1.39%
Median
0.00%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 1.51%, CTSH offers a more attractive income stream than most of its peers in the Information Technology Services industry, signaling a strong commitment to shareholder returns.

ASTS vs. CTSH: A comparison of their Dividend Yield against their respective Communication Equipment and Information Technology Services industry benchmarks.

Dividend Payout Ratio

ASTS

0.00%

Communication Equipment Industry

Max
91.96%
Q3
26.44%
Median
0.00%
Q1
0.00%
Min
0.00%

ASTS 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

25.63%

Information Technology Services Industry

Max
112.81%
Q3
20.98%
Median
0.00%
Q1
0.00%
Min
0.00%

CTSH’s Dividend Payout Ratio of 25.63% is in the upper quartile for the Information Technology Services industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

ASTS vs. CTSH: A comparison of their Payout Ratio against their respective Communication Equipment and Information Technology Services industry benchmarks.

Dividend at a Glance

SymbolASTSCTSH
Dividend Yield (TTM)0.00%1.51%
Dividend Payout Ratio (TTM)0.00%25.63%

Valuation

Price-to-Earnings Ratio

ASTS

-31.32

Communication Equipment Industry

Max
44.37
Q3
41.98
Median
30.61
Q1
23.44
Min
2.14

ASTS has a negative P/E Ratio of -31.32. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.

CTSH

16.97

Information Technology Services Industry

Max
49.12
Q3
36.91
Median
24.84
Q1
15.88
Min
1.55

CTSH’s P/E Ratio of 16.97 is within the middle range for the Information Technology Services industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

ASTS vs. CTSH: A comparison of their P/E Ratio against their respective Communication Equipment and Information Technology Services industry benchmarks.

Forward P/E to Growth Ratio

ASTS

15.35

Communication Equipment Industry

Max
15.97
Q3
6.99
Median
2.78
Q1
0.66
Min
0.05

The Forward PEG Ratio is often not a primary valuation metric in the Communication Equipment industry.

CTSH

2.97

Information Technology Services Industry

Max
5.35
Q3
3.79
Median
2.23
Q1
1.19
Min
0.03

CTSH’s Forward PEG Ratio of 2.97 is within the middle range of its peers in the Information Technology Services industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

ASTS vs. CTSH: A comparison of their Forward PEG Ratio against their respective Communication Equipment and Information Technology Services industry benchmarks.

Price-to-Sales Ratio

ASTS

5,043.28

Communication Equipment Industry

Max
6.38
Q3
3.88
Median
2.17
Q1
1.15
Min
0.37

With a P/S Ratio of 5,043.28, ASTS trades at a valuation that eclipses even the highest in the Communication Equipment industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

CTSH

1.99

Information Technology Services Industry

Max
8.15
Q3
4.17
Median
2.14
Q1
1.00
Min
0.10

CTSH’s P/S Ratio of 1.99 aligns with the market consensus for the Information Technology Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ASTS vs. CTSH: A comparison of their P/S Ratio against their respective Communication Equipment and Information Technology Services industry benchmarks.

Price-to-Book Ratio

ASTS

13.32

Communication Equipment Industry

Max
14.42
Q3
7.01
Median
3.09
Q1
1.38
Min
0.41

ASTS’s P/B Ratio of 13.32 is in the upper tier for the Communication Equipment 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

2.69

Information Technology Services Industry

Max
11.78
Q3
6.14
Median
3.23
Q1
1.97
Min
0.42

The P/B Ratio is often not a primary valuation metric for the Information Technology Services industry.

ASTS vs. CTSH: A comparison of their P/B Ratio against their respective Communication Equipment and Information Technology Services industry benchmarks.

Valuation at a Glance

SymbolASTSCTSH
Price-to-Earnings Ratio (P/E, TTM)-31.3216.97
Forward PEG Ratio (TTM)15.352.97
Price-to-Sales Ratio (P/S, TTM)5043.281.99
Price-to-Book Ratio (P/B, TTM)13.322.69
Price-to-Free Cash Flow Ratio (P/FCF, TTM)-64.6618.71
EV-to-EBITDA (TTM)-47.8010.61
EV-to-Sales (TTM)4858.601.95