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CTSH vs. IBM: Cognizant vs. IBM Stock Comparison

How do Cognizant (CTSH) and IBM (IBM) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Cognizant (CTSH) and IBM (IBM) are both classified in the IT Consulting & Other Services sub-industry within the broader IT Services industry, placing them in the closest GICS peer bucket.

Company profile comparison for Cognizant (CTSH) and IBM (IBM)
Profile ItemCTSHIBM
NameCognizant Technology Solutions Corp. Class A Common StockInternational Business Machines Corporation
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustryIT ServicesIT Services
GICS Sub-IndustryIT Consulting & Other ServicesIT Consulting & Other Services
Market Capitalization28.93 billion USD231.55 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateJune 19, 1998January 2, 1962
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

CTSH
IBM
GSPC
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Cognizant (CTSH) vs. IBM (IBM), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Cognizant (CTSH) and IBM (IBM). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Cognizant (CTSH) and IBM (IBM). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Cognizant (CTSH) and IBM (IBM)
MetricCTSHIBM
Total Return (1Y)-10.80%-16.98%
Total Return (3Y, Annualized)1.40%22.40%
Total Return (5Y, Annualized)-2.88%19.64%

Risk Profile

Drawdown History

CTSH
IBM
GSPC
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Cognizant (CTSH) vs. IBM (IBM), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Cognizant (CTSH) and IBM (IBM). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Cognizant (CTSH) and IBM (IBM)
MetricCTSHIBM
Volatility (1Y, Annualized)43.62%48.48%
Beta (5Y)0.830.79
Max Drawdown (5Y)-56.08%-37.50%
Avg. Volume (3M)6.65M5.30M

Risk-Adjusted Performance

Risk-Return Positioning

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CTSH and IBM are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Cognizant (CTSH) and IBM (IBM)
MetricCTSHIBM
Sharpe Ratio (1Y)-0.35-0.44
Sortino Ratio (1Y)-0.50-0.56

Profitability

ROE (TTM)

IBM (IBM) at 34.77% sits in the top ROE quartile, while Cognizant (CTSH) at 17.37% is closer to the peer norm — stronger capital efficiency for IBM.

CTSH

Software & Services industry group

17.37%

Max
53.85%
Q3
17.90%
CTSH
17.37%
Median
6.59%
Q1
-9.59%
Min
-50.52%

IBM

Software & Services industry group

34.77%

Max
53.85%
IBM
34.77%
Q3
17.90%
Median
6.59%
Q1
-9.59%
Min
-50.52%
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Cognizant (CTSH) vs. IBM (IBM): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

IBM (IBM) at 15.99% retains a top-quartile share of revenue as profit, ahead of Cognizant (CTSH) at 11.75%, which keeps about the industry-typical share.

CTSH

Software & Services industry group

11.75%

Max
41.17%
Q3
15.28%
CTSH
11.75%
Median
4.63%
Q1
-5.42%
Min
-33.17%

IBM

Software & Services industry group

15.99%

Max
41.17%
IBM
15.99%
Q3
15.28%
Median
4.63%
Q1
-5.42%
Min
-33.17%
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Cognizant (CTSH) vs. IBM (IBM): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Both Cognizant (CTSH) at 16.30% and IBM (IBM) at 16.97% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.

CTSH

Software & Services industry group

16.30%

Max
46.89%
Q3
17.64%
CTSH
16.30%
Median
8.73%
Q1
-2.13%
Min
-30.45%

IBM

Software & Services industry group

16.97%

Max
46.89%
Q3
17.64%
IBM
16.97%
Median
8.73%
Q1
-2.13%
Min
-30.45%
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Cognizant (CTSH) vs. IBM (IBM): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Cognizant (CTSH) and IBM (IBM)
MetricCTSHIBM
ROE (TTM)17.37%34.77%
ROA (TTM)10.78%5.33%
Net Margin (TTM)11.75%15.99%
Operating Margin (TTM)16.30%16.97%
Gross Margin (TTM)33.42%57.97%

Growth

Revenue Growth

IBM (IBM) at 7.62% is around its peer norm for revenue growth, while Cognizant (CTSH) at 6.95% drops into the bottom quartile, signaling weaker demand or pricing momentum.

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Cognizant (CTSH) vs. IBM (IBM): A comparison of their Revenue Growth across different time periods.

EPS Growth

IBM (IBM) at 73.72% sits in the top EPS growth quartile, while Cognizant (CTSH) at 1.11% is closer to the peer norm — faster per-share earnings growth for IBM.

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Cognizant (CTSH) vs. IBM (IBM): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Cognizant (CTSH) and IBM (IBM)
MetricCTSHIBM
Revenue Growth (YoY)6.95%7.62%
Revenue Growth (3Y CAGR)2.80%3.72%
EPS Growth (YoY)1.11%73.72%
EPS Growth (3Y CAGR)1.12%83.76%

Financial Strength

Current Ratio (MRQ)

Cognizant (CTSH) at 2.22 keeps current ratio within its industry’s typical mid-range, while IBM (IBM) at 0.86 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for IBM.

CTSH

Software & Services industry group

2.22

Max
5.11
Q3
2.77
CTSH
2.22
Median
1.67
Q1
1.01
Min
0.03

IBM

Software & Services industry group

0.86

Max
5.11
Q3
2.77
Median
1.67
Q1
1.01
IBM
0.86
Min
0.03
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Cognizant (CTSH) vs. IBM (IBM): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Cognizant (CTSH) at 0.14 carries an industry-typical debt-to-equity mix, while IBM (IBM) at 1.85 uses more debt funding than most peers.

CTSH

Software & Services industry group

0.14

Max
2.52
Q3
1.13
Median
0.40
CTSH
0.14
Q1
0.07
Min
0.00

IBM

Software & Services industry group

1.85

Max
2.52
IBM
1.85
Q3
1.13
Median
0.40
Q1
0.07
Min
0.00
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Cognizant (CTSH) vs. IBM (IBM): A comparison of their debt-to-equity ratio against the Software & Services industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Cognizant (CTSH) and IBM (IBM)
MetricCTSHIBM
Current Ratio (MRQ)2.220.86
Debt / Equity (MRQ)0.141.85
Net Debt / EBITDA0.143.37

Dividends

Dividend Yield (TTM)

Both Cognizant (CTSH) at 1.98% and IBM (IBM) at 2.73% yield above their industries’ entire benchmark ranges — high enough that dividend safety, not income, becomes the first question.

CTSH

Software & Services industry group

1.98%

CTSH
1.98%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

IBM

Software & Services industry group

2.73%

IBM
2.73%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Cognizant (CTSH) vs. IBM (IBM): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Both Cognizant (CTSH) at 23.72% and IBM (IBM) at 57.51% pay out more of their earnings than any of their industry peers — the thinnest cover in their groups, so dividend headroom deserves attention.

CTSH

Software & Services industry group

23.72%

CTSH
23.72%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

IBM

Software & Services industry group

57.51%

IBM
57.51%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Cognizant (CTSH) vs. IBM (IBM): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Cognizant (CTSH) and IBM (IBM)
MetricCTSHIBM
Dividend Yield (TTM)1.98%2.73%
Dividend Payout Ratio (TTM)23.72%57.51%

Valuation

P/E Ratio (TTM)

Cognizant (CTSH) at 11.81 sits in the cheaper P/E ratio quartile, while IBM (IBM) at 20.90 is closer to its industry’s usual earnings multiple — a discount for CTSH, though growth and earnings durability still matter.

CTSH

Software & Services industry group

11.81

Max
112.94
Q3
60.32
Median
32.91
Q1
18.77
CTSH
11.81
Min
6.69

IBM

Software & Services industry group

20.90

Max
112.94
Q3
60.32
Median
32.91
IBM
20.90
Q1
18.77
Min
6.69
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Cognizant (CTSH) vs. IBM (IBM): A comparison of their P/E ratio against the Software & Services industry group benchmark.

P/S Ratio (TTM)

Cognizant (CTSH) at 1.32 sits in the cheaper P/S ratio quartile while IBM (IBM) at 3.31 prices around its industry’s middle — CTSH costs less per dollar of sales, though read it alongside growth and margins.

CTSH

Software & Services industry group

1.32

Max
17.91
Q3
8.78
Median
4.25
Q1
2.23
CTSH
1.32
Min
0.02

IBM

Software & Services industry group

3.31

Max
17.91
Q3
8.78
Median
4.25
IBM
3.31
Q1
2.23
Min
0.02
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Cognizant (CTSH) vs. IBM (IBM): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

On P/B ratio, both Cognizant (CTSH) at 1.97 and IBM (IBM) at 6.52 are valued close to their industries’ norm against book — neither stands out from peers.

CTSH

Software & Services industry group

1.97

Max
16.63
Q3
8.50
Median
4.30
CTSH
1.97
Q1
1.92
Min
-3.90

IBM

Software & Services industry group

6.52

Max
16.63
Q3
8.50
IBM
6.52
Median
4.30
Q1
1.92
Min
-3.90
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Cognizant (CTSH) vs. IBM (IBM): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Cognizant (CTSH) and IBM (IBM)
MetricCTSHIBM
P/E Ratio (TTM)11.8120.90
P/S Ratio (TTM)1.323.31
P/B Ratio (MRQ)1.976.52
Free Cash Flow Yield (TTM)7.19%5.34%