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CTSH vs. MSFT: Cognizant vs. Microsoft Stock Comparison

How do Cognizant (CTSH) and Microsoft (MSFT) 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 Microsoft (MSFT) both fall under the Software & Services industry group, but CTSH is classified in IT Services while MSFT is classified in Software.

Company profile comparison for Cognizant (CTSH) and Microsoft (MSFT)
Profile ItemCTSHMSFT
NameCognizant Technology Solutions Corp. Class A Common StockMicrosoft Corporation Common Stock
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustryIT ServicesSoftware
GICS Sub-IndustryIT Consulting & Other ServicesSystems Software
Market Capitalization28.93 billion USD3,940.41 billion USD
CurrencyUSDUSD
ExchangeNasdaqNasdaq
Listing DateJune 19, 1998March 13, 1986
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

CTSH
MSFT
GSPC
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Cognizant (CTSH) vs. Microsoft (MSFT), 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 Microsoft (MSFT). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Cognizant (CTSH) and Microsoft (MSFT)
MetricCTSHMSFT
Total Return (1Y)-10.80%10.30%
Total Return (3Y, Annualized)1.40%15.53%
Total Return (5Y, Annualized)-2.88%11.01%

Risk Profile

Drawdown History

CTSH
MSFT
GSPC
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Cognizant (CTSH) vs. Microsoft (MSFT), 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 Microsoft (MSFT). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Cognizant (CTSH) and Microsoft (MSFT)
MetricCTSHMSFT
Volatility (1Y, Annualized)43.62%33.91%
Beta (5Y)0.831.03
Max Drawdown (5Y)-56.08%-37.15%
Avg. Volume (3M)6.65M22.95M

Risk-Adjusted Performance

Risk-Return Positioning

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CTSH and MSFT 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 Microsoft (MSFT)
MetricCTSHMSFT
Sharpe Ratio (1Y)-0.350.18
Sortino Ratio (1Y)-0.500.28

Profitability

ROE (TTM)

Microsoft (MSFT) at 34.22% sits in the top ROE quartile, while Cognizant (CTSH) at 17.37% is closer to the peer norm — stronger capital efficiency for MSFT.

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%

MSFT

Software & Services industry group

34.22%

Max
53.85%
MSFT
34.22%
Q3
17.90%
Median
6.59%
Q1
-9.59%
Min
-50.52%
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Cognizant (CTSH) vs. Microsoft (MSFT): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

Microsoft (MSFT) at 41.17% 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%

MSFT

Software & Services industry group

41.17%

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

Operating Margin (TTM)

Microsoft (MSFT) at 49.76% turns sales into operating profit above its industry’s benchmark range, while Cognizant (CTSH) at 16.30% operates around its industry’s norm.

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%

MSFT

Software & Services industry group

49.76%

MSFT
49.76%
Max
46.89%
Q3
17.64%
Median
8.73%
Q1
-2.13%
Min
-30.45%
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Cognizant (CTSH) vs. Microsoft (MSFT): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Cognizant (CTSH) and Microsoft (MSFT)
MetricCTSHMSFT
ROE (TTM)17.37%34.22%
ROA (TTM)10.78%14.41%
Net Margin (TTM)11.75%41.17%
Operating Margin (TTM)16.30%49.76%
Gross Margin (TTM)33.42%67.66%

Growth

Revenue Growth

Microsoft (MSFT) at 17.79% 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. Microsoft (MSFT): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Cognizant (CTSH) at 1.11% and Microsoft (MSFT) at 31.60% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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

Growth Metrics

Growth metrics for Cognizant (CTSH) and Microsoft (MSFT)
MetricCTSHMSFT
Revenue Growth (YoY)6.95%17.79%
Revenue Growth (3Y CAGR)2.80%16.12%
EPS Growth (YoY)1.11%31.60%
EPS Growth (3Y CAGR)1.12%22.86%

Financial Strength

Current Ratio (MRQ)

Both Cognizant (CTSH) at 2.22 and Microsoft (MSFT) at 1.23 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.

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

MSFT

Software & Services industry group

1.23

Max
5.11
Q3
2.77
Median
1.67
MSFT
1.23
Q1
1.01
Min
0.03
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Cognizant (CTSH) vs. Microsoft (MSFT): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Both Cognizant (CTSH) at 0.14 and Microsoft (MSFT) at 0.28 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

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

MSFT

Software & Services industry group

0.28

Max
2.52
Q3
1.13
Median
0.40
MSFT
0.28
Q1
0.07
Min
0.00
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Cognizant (CTSH) vs. Microsoft (MSFT): 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 Microsoft (MSFT)
MetricCTSHMSFT
Current Ratio (MRQ)2.221.23
Debt / Equity (MRQ)0.140.28
Net Debt / EBITDA0.140.34

Dividends

Dividend Yield (TTM)

Both Cognizant (CTSH) at 1.98% and Microsoft (MSFT) at 0.69% 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%

MSFT

Software & Services industry group

0.69%

MSFT
0.69%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Cognizant (CTSH) vs. Microsoft (MSFT): A comparison of their dividend yield against the Software & Services industry group benchmark.

Dividend Payout Ratio (TTM)

Both Cognizant (CTSH) at 23.72% and Microsoft (MSFT) at 19.00% 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%

MSFT

Software & Services industry group

19.00%

MSFT
19.00%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Cognizant (CTSH) vs. Microsoft (MSFT): A comparison of their payout ratio against the Software & Services industry group benchmark.

Dividend Metrics

Dividend metrics for Cognizant (CTSH) and Microsoft (MSFT)
MetricCTSHMSFT
Dividend Yield (TTM)1.98%0.69%
Dividend Payout Ratio (TTM)23.72%19.00%

Valuation

P/E Ratio (TTM)

Cognizant (CTSH) at 11.81 sits in the cheaper P/E ratio quartile, while Microsoft (MSFT) at 27.69 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

MSFT

Software & Services industry group

27.69

Max
112.94
Q3
60.32
Median
32.91
MSFT
27.69
Q1
18.77
Min
6.69
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Cognizant (CTSH) vs. Microsoft (MSFT): A comparison of their P/E ratio against the Software & Services industry group benchmark.

P/S Ratio (TTM)

Cognizant (CTSH) at 1.32 looks cheap on sales in the lower P/S ratio quartile, while Microsoft (MSFT) at 11.37 looks rich in the upper quartile — a clear gap in price per dollar of revenue.

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

MSFT

Software & Services industry group

11.37

Max
17.91
MSFT
11.37
Q3
8.78
Median
4.25
Q1
2.23
Min
0.02
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Cognizant (CTSH) vs. Microsoft (MSFT): 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 Microsoft (MSFT) at 8.38 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

MSFT

Software & Services industry group

8.38

Max
16.63
Q3
8.50
MSFT
8.38
Median
4.30
Q1
1.92
Min
-3.90
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Cognizant (CTSH) vs. Microsoft (MSFT): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Cognizant (CTSH) and Microsoft (MSFT)
MetricCTSHMSFT
P/E Ratio (TTM)11.8127.69
P/S Ratio (TTM)1.3211.37
P/B Ratio (MRQ)1.978.38
Free Cash Flow Yield (TTM)7.19%0.08%