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

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

Company Profile

SymbolCTSHHOOD
Company NameCognizant Technology Solutions CorporationRobinhood Markets, Inc.
CountryUnited StatesUnited States
GICS SectorInformation TechnologyFinancials
GICS IndustryIT ServicesCapital Markets
Market Capitalization34.39 billion USD96.53 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateJune 19, 1998July 29, 2021
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of CTSH and HOOD 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. HOOD: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolCTSHHOOD
5-Day Price Return1.88%-2.35%
13-Week Price Return-13.92%89.13%
26-Week Price Return-19.14%104.29%
52-Week Price Return-3.72%485.87%
Month-to-Date Return-1.87%5.41%
Year-to-Date Return-8.43%191.52%
10-Day Avg. Volume5.64M45.76M
3-Month Avg. Volume3.89M45.47M
3-Month Volatility22.67%55.10%
Beta0.972.37

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.

HOOD

22.92%

Capital Markets Industry

Max
38.97%
Q3
21.61%
Median
13.77%
Q1
8.31%
Min
-4.25%

In the upper quartile for the Capital Markets industry, HOOD’s Return on Equity of 22.92% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

CTSH vs. HOOD: A comparison of their Return on Equity (TTM) against their respective IT Services and Capital Markets 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.

HOOD

50.13%

Capital Markets Industry

Max
66.67%
Q3
35.11%
Median
23.49%
Q1
13.63%
Min
-15.18%

A Net Profit Margin of 50.13% places HOOD in the upper quartile for the Capital Markets industry, signifying strong profitability and more effective cost management than most of its peers.

CTSH vs. HOOD: A comparison of their Net Profit Margin (TTM) against their respective IT Services and Capital Markets 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.

HOOD

42.50%

Capital Markets Industry

Max
86.40%
Q3
46.46%
Median
32.80%
Q1
18.32%
Min
-21.87%

HOOD’s Operating Profit Margin of 42.50% is around the midpoint for the Capital Markets industry, indicating that its efficiency in managing core business operations is typical for the sector.

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

Profitability at a Glance

SymbolCTSHHOOD
Return on Equity (TTM)16.50%22.92%
Return on Assets (TTM)12.14%5.41%
Net Profit Margin (TTM)11.89%50.13%
Operating Profit Margin (TTM)15.42%42.50%
Gross Profit Margin (TTM)34.18%94.76%

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.

HOOD

1.25

Capital Markets Industry

Max
3.76
Q3
1.89
Median
1.01
Q1
0.54
Min
-0.41

For the Capital Markets industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

CTSH vs. HOOD: A comparison of their Current Ratio (MRQ) against their respective IT Services and Capital Markets 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.

HOOD

1.57

Capital Markets Industry

Max
6.62
Q3
2.84
Median
1.02
Q1
0.32
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Capital Markets industry.

CTSH vs. HOOD: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective IT Services and Capital Markets 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.

HOOD

--

Capital Markets Industry

Max
126.03
Q3
60.98
Median
11.77
Q1
4.95
Min
-36.26

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Capital Markets industry.

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

Financial Strength at a Glance

SymbolCTSHHOOD
Current Ratio (MRQ)2.411.25
Quick Ratio (MRQ)2.411.24
Debt-to-Equity Ratio (MRQ)0.041.57
Interest Coverage Ratio (TTM)100.81--

Growth

Revenue Growth

CTSH vs. HOOD: 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. HOOD: 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.

HOOD

0.00%

Capital Markets Industry

Max
10.26%
Q3
4.86%
Median
2.78%
Q1
1.22%
Min
0.00%

HOOD 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 vs. HOOD: A comparison of their Dividend Yield (TTM) against their respective IT Services and Capital Markets 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.

HOOD

0.00%

Capital Markets Industry

Max
200.72%
Q3
101.92%
Median
57.97%
Q1
32.36%
Min
0.00%

HOOD 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 vs. HOOD: A comparison of their Dividend Payout Ratio (TTM) against their respective IT Services and Capital Markets industry benchmarks.

Dividend at a Glance

SymbolCTSHHOOD
Dividend Yield (TTM)1.78%0.00%
Dividend Payout Ratio (TTM)24.92%0.00%

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.

HOOD

53.99

Capital Markets Industry

Max
58.89
Q3
31.00
Median
18.54
Q1
12.09
Min
5.24

A P/E Ratio of 53.99 places HOOD in the upper quartile for the Capital Markets industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

CTSH vs. HOOD: A comparison of their Price-to-Earnings Ratio (TTM) against their respective IT Services and Capital Markets 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.

HOOD

27.06

Capital Markets Industry

Max
14.49
Q3
7.41
Median
4.68
Q1
2.25
Min
0.04

With a P/S Ratio of 27.06, HOOD trades at a valuation that eclipses even the highest in the Capital Markets industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

CTSH vs. HOOD: A comparison of their Price-to-Sales Ratio (TTM) against their respective IT Services and Capital Markets 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.

HOOD

10.24

Capital Markets Industry

Max
9.48
Q3
4.94
Median
2.42
Q1
1.21
Min
0.38

At 10.24, HOOD’s P/B Ratio is at an extreme premium to the Capital Markets 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.

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

Valuation at a Glance

SymbolCTSHHOOD
Price-to-Earnings Ratio (TTM)14.0053.99
Price-to-Sales Ratio (TTM)1.6727.06
Price-to-Book Ratio (MRQ)2.5210.24
Price-to-Free Cash Flow Ratio (TTM)14.9516.32