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

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

Company Profile

SymbolCTSHFTV
Company NameCognizant Technology Solutions CorporationFortive Corporation
CountryUnited StatesUnited States
GICS SectorInformation TechnologyIndustrials
GICS IndustryIT ServicesMachinery
Market Capitalization34.39 billion USD16.49 billion USD
ExchangeNasdaqGSNYSE
Listing DateJune 19, 1998July 5, 2016
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of CTSH and FTV 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.

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

Historical Performance at a Glance

SymbolCTSHFTV
5-Day Price Return1.88%2.70%
13-Week Price Return-13.92%-33.92%
26-Week Price Return-19.14%-38.97%
52-Week Price Return-3.72%-28.68%
Month-to-Date Return-1.87%1.67%
Year-to-Date Return-8.43%-35.03%
10-Day Avg. Volume5.64M5.20M
3-Month Avg. Volume3.89M3.85M
3-Month Volatility22.67%55.22%
Beta0.971.09

Profitability

Return on Equity (TTM)

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.

FTV

7.44%

Machinery Industry

Max
34.68%
Q3
19.06%
Median
13.13%
Q1
8.53%
Min
-4.87%

FTV’s Return on Equity of 7.44% is in the lower quartile for the Machinery industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

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

Net Profit Margin (TTM)

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.

FTV

12.51%

Machinery Industry

Max
19.74%
Q3
11.24%
Median
8.13%
Q1
5.38%
Min
-1.11%

A Net Profit Margin of 12.51% places FTV in the upper quartile for the Machinery industry, signifying strong profitability and more effective cost management than most of its peers.

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

Operating Profit Margin (TTM)

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.

FTV

17.22%

Machinery Industry

Max
26.63%
Q3
16.15%
Median
11.27%
Q1
7.72%
Min
-4.91%

An Operating Profit Margin of 17.22% places FTV in the upper quartile for the Machinery industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

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

Profitability at a Glance

SymbolCTSHFTV
Return on Equity (TTM)16.50%7.44%
Return on Assets (TTM)12.14%4.40%
Net Profit Margin (TTM)11.89%12.51%
Operating Profit Margin (TTM)15.42%17.22%
Gross Profit Margin (TTM)34.18%59.78%

Financial Strength

Current Ratio (MRQ)

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.

FTV

0.98

Machinery Industry

Max
3.83
Q3
2.32
Median
1.72
Q1
1.28
Min
0.78

FTV’s Current Ratio of 0.98 falls into the lower quartile for the Machinery industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

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

Debt-to-Equity Ratio (MRQ)

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.

FTV

0.46

Machinery Industry

Max
1.49
Q3
0.75
Median
0.44
Q1
0.26
Min
0.00

FTV’s Debt-to-Equity Ratio of 0.46 is typical for the Machinery industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

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

Interest Coverage Ratio (TTM)

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.

FTV

6.04

Machinery Industry

Max
67.55
Q3
33.79
Median
13.87
Q1
7.97
Min
-1.43

In the lower quartile for the Machinery industry, FTV’s Interest Coverage Ratio of 6.04 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

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

Financial Strength at a Glance

SymbolCTSHFTV
Current Ratio (MRQ)2.410.98
Quick Ratio (MRQ)2.410.77
Debt-to-Equity Ratio (MRQ)0.040.46
Interest Coverage Ratio (TTM)100.816.04

Growth

Revenue Growth

CTSH vs. FTV: 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

CTSH vs. FTV: 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)

CTSH

1.78%

IT Services Industry

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

With a Dividend Yield of 1.78%, CTSH offers a more attractive income stream than most of its peers in the IT Services industry, signaling a strong commitment to shareholder returns.

FTV

0.67%

Machinery Industry

Max
5.32%
Q3
2.84%
Median
1.87%
Q1
1.09%
Min
0.00%

FTV’s Dividend Yield of 0.67% is in the lower quartile for the Machinery industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

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

Dividend Payout Ratio (TTM)

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.

FTV

14.22%

Machinery Industry

Max
202.17%
Q3
98.65%
Median
55.54%
Q1
29.03%
Min
0.00%

FTV’s Dividend Payout Ratio of 14.22% is in the lower quartile for the Machinery industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

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

Dividend at a Glance

SymbolCTSHFTV
Dividend Yield (TTM)1.78%0.67%
Dividend Payout Ratio (TTM)24.92%14.22%

Valuation

Price-to-Earnings Ratio (TTM)

CTSH

14.00

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 14.00 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

FTV

21.32

Machinery Industry

Max
53.66
Q3
31.29
Median
22.00
Q1
16.18
Min
7.00

FTV’s P/E Ratio of 21.32 is within the middle range for the Machinery 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 vs. FTV: A comparison of their Price-to-Earnings Ratio (TTM) against their respective IT Services and Machinery industry benchmarks.

Price-to-Sales Ratio (TTM)

CTSH

1.67

IT Services Industry

Max
6.61
Q3
4.37
Median
2.02
Q1
1.20
Min
0.19

CTSH’s P/S Ratio of 1.67 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.

FTV

2.67

Machinery Industry

Max
5.04
Q3
2.72
Median
1.67
Q1
1.04
Min
0.24

FTV’s P/S Ratio of 2.67 aligns with the market consensus for the Machinery industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

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

Price-to-Book Ratio (MRQ)

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.

FTV

2.34

Machinery Industry

Max
7.23
Q3
3.90
Median
2.52
Q1
1.47
Min
0.49

FTV’s P/B Ratio of 2.34 is within the conventional range for the Machinery 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.

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

Valuation at a Glance

SymbolCTSHFTV
Price-to-Earnings Ratio (TTM)14.0021.32
Price-to-Sales Ratio (TTM)1.672.67
Price-to-Book Ratio (MRQ)2.522.34
Price-to-Free Cash Flow Ratio (TTM)14.9511.83