CTSH vs. OKTA: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at CTSH and OKTA, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | CTSH | OKTA |
|---|---|---|
| Company Name | Cognizant Technology Solutions Corporation | Okta, Inc. |
| Country | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | IT Services | IT Services |
| Market Capitalization | 34.39 billion USD | 15.93 billion USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | June 19, 1998 | April 7, 2017 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of CTSH and OKTA 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 | OKTA |
|---|---|---|
| 5-Day Price Return | 1.88% | -2.78% |
| 13-Week Price Return | -13.92% | -26.73% |
| 26-Week Price Return | -19.14% | -6.66% |
| 52-Week Price Return | -3.72% | -1.13% |
| Month-to-Date Return | -1.87% | -6.97% |
| Year-to-Date Return | -8.43% | 15.46% |
| 10-Day Avg. Volume | 5.64M | 2.92M |
| 3-Month Avg. Volume | 3.89M | 3.92M |
| 3-Month Volatility | 22.67% | 43.77% |
| Beta | 0.97 | 0.83 |
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.
OKTA
2.05%
IT Services Industry
- Max
- 29.51%
- Q3
- 16.98%
- Median
- 13.47%
- Q1
- 7.93%
- Min
- -3.97%
OKTA’s Return on Equity of 2.05% is in the lower quartile for the IT Services industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.
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.
OKTA
4.85%
IT Services Industry
- Max
- 19.82%
- Q3
- 11.49%
- Median
- 6.67%
- Q1
- 3.61%
- Min
- -4.62%
OKTA’s Net Profit Margin of 4.85% 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.
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.
OKTA
1.16%
IT Services Industry
- Max
- 21.69%
- Q3
- 14.50%
- Median
- 10.06%
- Q1
- 6.98%
- Min
- 0.06%
OKTA’s Operating Profit Margin of 1.16% is in the lower quartile for the IT Services industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
| Symbol | CTSH | OKTA |
|---|---|---|
| Return on Equity (TTM) | 16.50% | 2.05% |
| Return on Assets (TTM) | 12.14% | 1.41% |
| Net Profit Margin (TTM) | 11.89% | 4.85% |
| Operating Profit Margin (TTM) | 15.42% | 1.16% |
| Gross Profit Margin (TTM) | 34.18% | 76.69% |
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.
OKTA
1.47
IT Services Industry
- Max
- 2.42
- Q3
- 1.81
- Median
- 1.47
- Q1
- 1.09
- Min
- 0.44
OKTA’s Current Ratio of 1.47 aligns with the median group of the IT Services 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
- 2.33
- 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.
OKTA
0.13
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, OKTA’s Debt-to-Equity Ratio of 0.13 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
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.
OKTA
-9.31
IT Services Industry
- Max
- 144.50
- Q3
- 84.49
- Median
- 13.76
- Q1
- 2.59
- Min
- -28.13
OKTA has a negative Interest Coverage Ratio of -9.31. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
Financial Strength at a Glance
| Symbol | CTSH | OKTA |
|---|---|---|
| Current Ratio (MRQ) | 2.41 | 1.47 |
| Quick Ratio (MRQ) | 2.41 | 1.41 |
| Debt-to-Equity Ratio (MRQ) | 0.04 | 0.13 |
| Interest Coverage Ratio (TTM) | 100.81 | -9.31 |
Growth
Revenue Growth
EPS Growth
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.
OKTA
0.00%
IT Services Industry
- Max
- 2.80%
- Q3
- 1.74%
- Median
- 0.62%
- Q1
- 0.00%
- Min
- 0.00%
OKTA 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.
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.
OKTA
0.00%
IT Services Industry
- Max
- 147.75%
- Q3
- 63.58%
- Median
- 24.63%
- Q1
- 0.00%
- Min
- 0.00%
OKTA 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.
Dividend at a Glance
| Symbol | CTSH | OKTA |
|---|---|---|
| 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.
OKTA
122.71
IT Services Industry
- Max
- 41.55
- Q3
- 31.54
- Median
- 23.25
- Q1
- 18.12
- Min
- 6.57
At 122.71, OKTA’s P/E Ratio is exceptionally high, exceeding the typical maximum for the IT Services industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
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.
OKTA
5.95
IT Services Industry
- Max
- 6.61
- Q3
- 4.37
- Median
- 2.02
- Q1
- 1.20
- Min
- 0.19
OKTA’s P/S Ratio of 5.95 is in the upper echelon for the IT Services industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
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.
OKTA
2.97
IT Services Industry
- Max
- 11.19
- Q3
- 6.38
- Median
- 3.47
- Q1
- 2.31
- Min
- 0.96
OKTA’s P/B Ratio of 2.97 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.
Valuation at a Glance
| Symbol | CTSH | OKTA |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 14.00 | 122.71 |
| Price-to-Sales Ratio (TTM) | 1.67 | 5.95 |
| Price-to-Book Ratio (MRQ) | 2.52 | 2.97 |
| Price-to-Free Cash Flow Ratio (TTM) | 14.95 | 21.16 |