CTSH vs. NTES: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at CTSH and NTES, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
CTSH is a standard domestic listing, while NTES trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.
| Symbol | CTSH | NTES |
|---|---|---|
| Company Name | Cognizant Technology Solutions Corporation | NetEase, Inc. |
| Country | United States | China |
| GICS Sector | Information Technology | Communication Services |
| GICS Industry | IT Services | Entertainment |
| Market Capitalization | 37.11 billion USD | 85.92 billion USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | June 19, 1998 | June 30, 2000 |
| Security Type | Common Stock | ADR |
Historical Performance
This chart compares the performance of CTSH and NTES 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 | NTES |
|---|---|---|
| 5-Day Price Return | -0.37% | -4.41% |
| 13-Week Price Return | 1.79% | 1.58% |
| 26-Week Price Return | -11.30% | 12.47% |
| 52-Week Price Return | -5.20% | 56.34% |
| Month-to-Date Return | -0.73% | -4.39% |
| Year-to-Date Return | -5.92% | 50.15% |
| 10-Day Avg. Volume | 4.17M | 0.92M |
| 3-Month Avg. Volume | 4.37M | 0.73M |
| 3-Month Volatility | 24.59% | 31.02% |
| Beta | 0.96 | 0.69 |
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.
NTES
24.25%
Entertainment Industry
- Max
- 41.86%
- Q3
- 22.17%
- Median
- 13.67%
- Q1
- 4.55%
- Min
- -17.95%
In the upper quartile for the Entertainment industry, NTES’s Return on Equity of 24.25% 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.
NTES
31.19%
Entertainment Industry
- Max
- 45.33%
- Q3
- 29.05%
- Median
- 15.14%
- Q1
- 4.44%
- Min
- -21.70%
A Net Profit Margin of 31.19% places NTES in the upper quartile for the Entertainment industry, signifying strong profitability and more effective cost management than most of its peers.
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.
NTES
31.43%
Entertainment Industry
- Max
- 43.42%
- Q3
- 28.90%
- Median
- 18.77%
- Q1
- 9.11%
- Min
- -4.88%
An Operating Profit Margin of 31.43% places NTES in the upper quartile for the Entertainment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | CTSH | NTES |
|---|---|---|
| Return on Equity (TTM) | 14.31% | 24.25% |
| Return on Assets (TTM) | 10.61% | 17.31% |
| Net Profit Margin (TTM) | 10.20% | 31.19% |
| Operating Profit Margin (TTM) | 15.76% | 31.43% |
| Gross Profit Margin (TTM) | 34.06% | 63.17% |
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.
NTES
3.23
Entertainment Industry
- Max
- 6.76
- Q3
- 4.06
- Median
- 1.58
- Q1
- 0.87
- Min
- 0.38
NTES’s Current Ratio of 3.23 aligns with the median group of the Entertainment 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.
NTES
0.08
Entertainment Industry
- Max
- 1.54
- Q3
- 0.80
- Median
- 0.15
- Q1
- 0.01
- Min
- 0.00
NTES’s Debt-to-Equity Ratio of 0.08 is typical for the Entertainment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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.
NTES
161.13
Entertainment Industry
- Max
- 62.11
- Q3
- 35.59
- Median
- 7.06
- Q1
- 1.13
- Min
- -44.74
With an Interest Coverage Ratio of 161.13, NTES demonstrates a superior capacity to service its debt, placing it well above the typical range for the Entertainment industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | CTSH | NTES |
|---|---|---|
| Current Ratio (MRQ) | 2.36 | 3.23 |
| Quick Ratio (MRQ) | 2.36 | 3.10 |
| Debt-to-Equity Ratio (MRQ) | 0.04 | 0.08 |
| Interest Coverage Ratio (TTM) | 100.81 | 161.13 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
CTSH
1.65%
IT Services Industry
- Max
- 4.66%
- Q3
- 2.02%
- Median
- 0.66%
- Q1
- 0.00%
- Min
- 0.00%
CTSH’s Dividend Yield of 1.65% is consistent with its peers in the IT Services industry, providing a dividend return that is standard for its sector.
NTES
2.12%
Entertainment Industry
- Max
- 2.71%
- Q3
- 1.23%
- Median
- 0.60%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 2.12%, NTES offers a more attractive income stream than most of its peers in the Entertainment industry, signaling a strong commitment to shareholder returns.
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.
NTES
36.90%
Entertainment Industry
- Max
- 82.30%
- Q3
- 37.50%
- Median
- 24.18%
- Q1
- 0.00%
- Min
- 0.00%
NTES’s Dividend Payout Ratio of 36.90% is within the typical range for the Entertainment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | CTSH | NTES |
|---|---|---|
| Dividend Yield (TTM) | 1.65% | 2.12% |
| Dividend Payout Ratio (TTM) | 28.62% | 36.90% |
Valuation
Price-to-Earnings Ratio (TTM)
CTSH
17.34
IT Services Industry
- Max
- 45.03
- Q3
- 30.25
- Median
- 21.01
- Q1
- 16.50
- Min
- 0.00
CTSH’s P/E Ratio of 17.34 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.
NTES
17.42
Entertainment Industry
- Max
- 80.06
- Q3
- 53.00
- Median
- 28.44
- Q1
- 18.00
- Min
- 2.61
In the lower quartile for the Entertainment industry, NTES’s P/E Ratio of 17.42 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Price-to-Sales Ratio (TTM)
CTSH
1.77
IT Services Industry
- Max
- 5.24
- Q3
- 4.01
- Median
- 2.18
- Q1
- 1.08
- Min
- 0.00
CTSH’s P/S Ratio of 1.77 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.
NTES
5.43
Entertainment Industry
- Max
- 10.86
- Q3
- 6.98
- Median
- 4.25
- Q1
- 2.56
- Min
- 0.51
NTES’s P/S Ratio of 5.43 aligns with the market consensus for the Entertainment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
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.
NTES
4.05
Entertainment Industry
- Max
- 19.63
- Q3
- 10.35
- Median
- 5.18
- Q1
- 2.07
- Min
- 0.59
NTES’s P/B Ratio of 4.05 is within the conventional range for the Entertainment 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.
Valuation at a Glance
| Symbol | CTSH | NTES |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 17.34 | 17.42 |
| Price-to-Sales Ratio (TTM) | 1.77 | 5.43 |
| Price-to-Book Ratio (MRQ) | 2.20 | 4.05 |
| Price-to-Free Cash Flow Ratio (TTM) | 13.92 | 13.46 |