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

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

Company Profile

CTSH is a standard domestic listing, while NOK trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.

SymbolCTSHNOK
Company NameCognizant Technology Solutions CorporationNokia Oyj
CountryUnited StatesFinland
GICS SectorInformation TechnologyInformation Technology
GICS IndustryIT ServicesCommunications Equipment
Market Capitalization34.43 billion USD23.05 billion USD
ExchangeNasdaqGSNYSE
Listing DateJune 19, 1998July 1, 1994
Security TypeCommon StockADR

Historical Performance

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

Historical Performance at a Glance

SymbolCTSHNOK
5-Day Price Return1.61%1.84%
13-Week Price Return-13.58%-21.01%
26-Week Price Return-21.31%-22.07%
52-Week Price Return-7.24%-30.85%
Month-to-Date Return-1.77%1.62%
Year-to-Date Return-8.34%-14.70%
10-Day Avg. Volume4.07M7.92M
3-Month Avg. Volume3.71M9.65M
3-Month Volatility21.70%29.78%
Beta0.970.80

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.

NOK

5.01%

Communications Equipment Industry

Max
32.05%
Q3
19.58%
Median
11.77%
Q1
2.23%
Min
-11.93%

NOK’s Return on Equity of 5.01% is on par with the norm for the Communications Equipment industry, indicating its profitability relative to shareholder equity is typical for the sector.

CTSH vs. NOK: A comparison of their Return on Equity (TTM) against their respective IT Services and Communications Equipment 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.

NOK

5.31%

Communications Equipment Industry

Max
23.65%
Q3
14.32%
Median
5.31%
Q1
1.45%
Min
-12.72%

NOK’s Net Profit Margin of 5.31% is aligned with the median group of its peers in the Communications Equipment industry. This indicates its ability to convert revenue into profit is typical for the sector.

CTSH vs. NOK: A comparison of their Net Profit Margin (TTM) against their respective IT Services and Communications Equipment 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.

NOK

6.21%

Communications Equipment Industry

Max
42.27%
Q3
18.90%
Median
6.21%
Q1
2.97%
Min
-20.72%

NOK’s Operating Profit Margin of 6.21% is around the midpoint for the Communications Equipment industry, indicating that its efficiency in managing core business operations is typical for the sector.

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

Profitability at a Glance

SymbolCTSHNOK
Return on Equity (TTM)16.50%5.01%
Return on Assets (TTM)12.14%2.68%
Net Profit Margin (TTM)11.89%5.31%
Operating Profit Margin (TTM)15.42%6.21%
Gross Profit Margin (TTM)34.18%44.23%

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.

NOK

1.46

Communications Equipment Industry

Max
1.72
Q3
1.72
Median
1.46
Q1
1.18
Min
0.93

NOK’s Current Ratio of 1.46 aligns with the median group of the Communications Equipment industry, indicating that its short-term liquidity is in line with its sector peers.

CTSH vs. NOK: A comparison of their Current Ratio (MRQ) against their respective IT Services and Communications Equipment 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.

NOK

0.21

Communications Equipment Industry

Max
1.55
Q3
0.92
Median
0.55
Q1
0.30
Min
0.00

Falling into the lower quartile for the Communications Equipment industry, NOK’s Debt-to-Equity Ratio of 0.21 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

CTSH vs. NOK: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective IT Services and Communications Equipment 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.

NOK

34.19

Communications Equipment Industry

Max
181.73
Q3
113.63
Median
7.59
Q1
3.82
Min
-5.39

NOK’s Interest Coverage Ratio of 34.19 is positioned comfortably within the norm for the Communications Equipment industry, indicating a standard and healthy capacity to cover its interest payments.

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

Financial Strength at a Glance

SymbolCTSHNOK
Current Ratio (MRQ)2.411.46
Quick Ratio (MRQ)2.411.21
Debt-to-Equity Ratio (MRQ)0.040.21
Interest Coverage Ratio (TTM)100.8134.19

Growth

Revenue Growth

CTSH vs. NOK: 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. NOK: 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

1.75%

IT Services Industry

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

With a Dividend Yield of 1.75%, CTSH offers a more attractive income stream than most of its peers in the IT Services industry, signaling a strong commitment to shareholder returns.

NOK

3.61%

Communications Equipment Industry

Max
3.88%
Q3
2.75%
Median
0.93%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 3.61%, NOK offers a more attractive income stream than most of its peers in the Communications Equipment industry, signaling a strong commitment to shareholder returns.

CTSH vs. NOK: A comparison of their Dividend Yield (TTM) against their respective IT Services and Communications Equipment 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.

NOK

50.74%

Communications Equipment Industry

Max
111.16%
Q3
55.91%
Median
28.42%
Q1
0.00%
Min
0.00%

NOK’s Dividend Payout Ratio of 50.74% is within the typical range for the Communications Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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

Dividend at a Glance

SymbolCTSHNOK
Dividend Yield (TTM)1.75%3.61%
Dividend Payout Ratio (TTM)24.92%50.74%

Valuation

Price-to-Earnings Ratio (TTM)

CTSH

14.21

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

NOK

19.25

Communications Equipment Industry

Max
57.30
Q3
47.92
Median
27.50
Q1
17.89
Min
13.89

NOK’s P/E Ratio of 19.25 is within the middle range for the Communications Equipment 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. NOK: A comparison of their Price-to-Earnings Ratio (TTM) against their respective IT Services and Communications Equipment industry benchmarks.

Price-to-Sales Ratio (TTM)

CTSH

1.69

IT Services Industry

Max
6.61
Q3
4.37
Median
2.02
Q1
1.20
Min
0.19

CTSH’s P/S Ratio of 1.69 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.

NOK

1.02

Communications Equipment Industry

Max
11.03
Q3
5.53
Median
2.20
Q1
0.99
Min
0.40

NOK’s P/S Ratio of 1.02 aligns with the market consensus for the Communications Equipment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

CTSH vs. NOK: A comparison of their Price-to-Sales Ratio (TTM) against their respective IT Services and Communications Equipment 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.

NOK

1.21

Communications Equipment Industry

Max
9.66
Q3
5.60
Median
3.73
Q1
2.67
Min
0.30

NOK’s P/B Ratio of 1.21 is in the lower quartile for the Communications Equipment 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.

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

Valuation at a Glance

SymbolCTSHNOK
Price-to-Earnings Ratio (TTM)14.2119.25
Price-to-Sales Ratio (TTM)1.691.02
Price-to-Book Ratio (MRQ)2.521.21
Price-to-Free Cash Flow Ratio (TTM)15.1713.27