CTSH vs. GRMN: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at CTSH and GRMN, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | CTSH | GRMN |
|---|---|---|
| Company Name | Cognizant Technology Solutions Corporation | Garmin Ltd. |
| Country | United States | Switzerland |
| GICS Sector | Information Technology | Consumer Discretionary |
| GICS Industry | IT Services | Household Durables |
| Market Capitalization | 35.54 billion USD | 36.72 billion USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | June 19, 1998 | December 8, 2000 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of CTSH and GRMN 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.
Historical Performance at a Glance
| Symbol | CTSH | GRMN |
|---|---|---|
| 5-Day Price Return | -0.36% | -4.24% |
| 13-Week Price Return | 3.74% | -16.45% |
| 26-Week Price Return | -10.64% | -3.15% |
| 52-Week Price Return | -11.78% | -8.85% |
| Month-to-Date Return | -0.36% | -9.26% |
| Year-to-Date Return | -5.57% | -5.88% |
| 10-Day Avg. Volume | 4.85M | 1.17M |
| 3-Month Avg. Volume | 4.31M | 0.88M |
| 3-Month Volatility | 24.33% | 30.78% |
| Beta | 0.98 | 1.04 |
Profitability
Return on Equity (TTM)
CTSH
14.31%
IT Services Industry
- Max
- 37.08%
- Q3
- 19.28%
- Median
- 14.70%
- Q1
- 6.70%
- Min
- -8.16%
CTSH’s Return on Equity of 14.31% is on par with the norm for the IT Services industry, indicating its profitability relative to shareholder equity is typical for the sector.
GRMN
19.26%
Household Durables Industry
- Max
- 26.77%
- Q3
- 17.22%
- Median
- 11.18%
- Q1
- 6.35%
- Min
- -7.31%
In the upper quartile for the Household Durables industry, GRMN’s Return on Equity of 19.26% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
CTSH
10.20%
IT Services Industry
- Max
- 17.01%
- Q3
- 11.02%
- Median
- 6.91%
- Q1
- 3.07%
- Min
- -5.13%
CTSH’s Net Profit Margin of 10.20% is aligned with the median group of its peers in the IT Services industry. This indicates its ability to convert revenue into profit is typical for the sector.
GRMN
22.63%
Household Durables Industry
- Max
- 16.03%
- Q3
- 9.13%
- Median
- 6.61%
- Q1
- 3.40%
- Min
- -4.24%
GRMN’s Net Profit Margin of 22.63% is exceptionally high, placing it well beyond the typical range for the Household Durables industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
Operating Profit Margin (TTM)
CTSH
15.76%
IT Services Industry
- Max
- 23.01%
- Q3
- 15.32%
- Median
- 9.57%
- Q1
- 4.91%
- Min
- -9.58%
An Operating Profit Margin of 15.76% 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.
GRMN
25.61%
Household Durables Industry
- Max
- 20.79%
- Q3
- 12.10%
- Median
- 9.44%
- Q1
- 5.22%
- Min
- -3.50%
GRMN’s Operating Profit Margin of 25.61% is exceptionally high, placing it well above the typical range for the Household Durables industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
Profitability at a Glance
| Symbol | CTSH | GRMN |
|---|---|---|
| Return on Equity (TTM) | 14.31% | 19.26% |
| Return on Assets (TTM) | 10.61% | 15.61% |
| Net Profit Margin (TTM) | 10.20% | 22.63% |
| Operating Profit Margin (TTM) | 15.76% | 25.61% |
| Gross Profit Margin (TTM) | 34.06% | 58.73% |
Financial Strength
Current Ratio (MRQ)
CTSH
2.36
IT Services Industry
- Max
- 3.02
- Q3
- 1.91
- Median
- 1.36
- Q1
- 1.02
- Min
- 0.49
CTSH’s Current Ratio of 2.36 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.
GRMN
3.32
Household Durables Industry
- Max
- 6.43
- Q3
- 3.68
- Median
- 2.54
- Q1
- 1.23
- Min
- 0.75
GRMN’s Current Ratio of 3.32 aligns with the median group of the Household Durables industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
CTSH
0.04
IT Services Industry
- Max
- 2.55
- Q3
- 1.30
- Median
- 0.55
- Q1
- 0.14
- 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.
GRMN
0.00
Household Durables Industry
- Max
- 1.77
- Q3
- 0.83
- Median
- 0.34
- Q1
- 0.18
- Min
- 0.00
Falling into the lower quartile for the Household Durables industry, GRMN’s Debt-to-Equity Ratio of 0.00 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio (TTM)
CTSH
100.81
IT Services Industry
- Max
- 129.00
- Q3
- 56.00
- Median
- 11.69
- Q1
- 1.68
- Min
- -28.15
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.
GRMN
73.26
Household Durables Industry
- Max
- 140.40
- Q3
- 77.14
- Median
- 24.53
- Q1
- 5.69
- Min
- -17.01
GRMN’s Interest Coverage Ratio of 73.26 is positioned comfortably within the norm for the Household Durables industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | CTSH | GRMN |
|---|---|---|
| Current Ratio (MRQ) | 2.36 | 3.32 |
| Quick Ratio (MRQ) | 2.36 | 2.01 |
| Debt-to-Equity Ratio (MRQ) | 0.04 | 0.00 |
| Interest Coverage Ratio (TTM) | 100.81 | 73.26 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
CTSH
1.73%
IT Services Industry
- Max
- 4.66%
- Q3
- 2.02%
- Median
- 0.66%
- Q1
- 0.00%
- Min
- 0.00%
CTSH’s Dividend Yield of 1.73% is consistent with its peers in the IT Services industry, providing a dividend return that is standard for its sector.
GRMN
1.73%
Household Durables Industry
- Max
- 9.27%
- Q3
- 3.94%
- Median
- 1.84%
- Q1
- 0.03%
- Min
- 0.00%
GRMN’s Dividend Yield of 1.73% is consistent with its peers in the Household Durables industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
CTSH
28.62%
IT Services Industry
- Max
- 93.78%
- Q3
- 63.22%
- Median
- 24.64%
- Q1
- 0.00%
- Min
- 0.00%
CTSH’s Dividend Payout Ratio of 28.62% is within the typical range for the IT Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
GRMN
40.42%
Household Durables Industry
- Max
- 154.55%
- Q3
- 65.87%
- Median
- 40.54%
- Q1
- 6.74%
- Min
- 0.00%
GRMN’s Dividend Payout Ratio of 40.42% is within the typical range for the Household Durables industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | CTSH | GRMN |
|---|---|---|
| Dividend Yield (TTM) | 1.73% | 1.73% |
| Dividend Payout Ratio (TTM) | 28.62% | 40.42% |
Valuation
Price-to-Earnings Ratio (TTM)
CTSH
16.50
IT Services Industry
- Max
- 45.03
- Q3
- 30.25
- Median
- 21.01
- Q1
- 16.50
- Min
- 0.00
CTSH’s P/E Ratio of 16.50 is within the middle range for the IT 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.
GRMN
23.38
Household Durables Industry
- Max
- 33.05
- Q3
- 20.97
- Median
- 12.60
- Q1
- 9.92
- Min
- 6.71
A P/E Ratio of 23.38 places GRMN in the upper quartile for the Household Durables industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
Price-to-Sales Ratio (TTM)
CTSH
1.68
IT Services Industry
- Max
- 5.24
- Q3
- 4.01
- Median
- 2.18
- Q1
- 1.08
- Min
- 0.00
CTSH’s P/S Ratio of 1.68 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.
GRMN
5.29
Household Durables Industry
- Max
- 2.29
- Q3
- 1.31
- Median
- 0.86
- Q1
- 0.56
- Min
- 0.15
With a P/S Ratio of 5.29, GRMN trades at a valuation that eclipses even the highest in the Household Durables industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio (MRQ)
CTSH
2.20
IT Services Industry
- Max
- 9.42
- Q3
- 5.79
- Median
- 3.70
- Q1
- 2.30
- Min
- 0.79
CTSH’s P/B Ratio of 2.20 is in the lower quartile for the IT Services industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
GRMN
5.57
Household Durables Industry
- Max
- 2.77
- Q3
- 2.08
- Median
- 1.44
- Q1
- 1.07
- Min
- 0.58
At 5.57, GRMN’s P/B Ratio is at an extreme premium to the Household Durables industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | CTSH | GRMN |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 16.50 | 23.38 |
| Price-to-Sales Ratio (TTM) | 1.68 | 5.29 |
| Price-to-Book Ratio (MRQ) | 2.20 | 5.57 |
| Price-to-Free Cash Flow Ratio (TTM) | 13.24 | 27.56 |