Seek Returns logo

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

Updated on

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

Company Profile

SymbolCTSHPANW
Company NameCognizant Technology Solutions CorporationPalo Alto Networks, Inc.
CountryUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustryIT ServicesSoftware
Market Capitalization34.39 billion USD118.13 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateJune 19, 1998July 20, 2012
Security TypeCommon StockCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolCTSHPANW
5-Day Price Return1.88%5.21%
13-Week Price Return-13.92%-8.60%
26-Week Price Return-19.14%-5.61%
52-Week Price Return-3.72%6.83%
Month-to-Date Return-1.87%1.88%
Year-to-Date Return-8.43%-2.80%
10-Day Avg. Volume5.64M13.39M
3-Month Avg. Volume3.89M6.54M
3-Month Volatility22.67%35.94%
Beta0.970.97

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.

PANW

20.06%

Software Industry

Max
59.01%
Q3
21.98%
Median
7.15%
Q1
-11.12%
Min
-51.24%

PANW’s Return on Equity of 20.06% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.

CTSH vs. PANW: A comparison of their Return on Equity (TTM) against their respective IT Services and Software 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.

PANW

13.95%

Software Industry

Max
48.14%
Q3
18.23%
Median
5.60%
Q1
-9.22%
Min
-49.36%

PANW’s Net Profit Margin of 13.95% is aligned with the median group of its peers in the Software industry. This indicates its ability to convert revenue into profit is typical for the sector.

CTSH vs. PANW: A comparison of their Net Profit Margin (TTM) against their respective IT Services and Software 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.

PANW

11.09%

Software Industry

Max
57.34%
Q3
20.60%
Median
7.84%
Q1
-8.72%
Min
-51.37%

PANW’s Operating Profit Margin of 11.09% is around the midpoint for the Software industry, indicating that its efficiency in managing core business operations is typical for the sector.

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

Profitability at a Glance

SymbolCTSHPANW
Return on Equity (TTM)16.50%20.06%
Return on Assets (TTM)12.14%5.94%
Net Profit Margin (TTM)11.89%13.95%
Operating Profit Margin (TTM)15.42%11.09%
Gross Profit Margin (TTM)34.18%73.56%

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.

PANW

0.90

Software Industry

Max
3.83
Q3
2.31
Median
1.45
Q1
1.03
Min
0.24

PANW’s Current Ratio of 0.90 falls into the lower quartile for the Software industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

CTSH vs. PANW: A comparison of their Current Ratio (MRQ) against their respective IT Services and Software 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.

PANW

0.05

Software Industry

Max
2.14
Q3
0.90
Median
0.29
Q1
0.00
Min
0.00

PANW’s Debt-to-Equity Ratio of 0.05 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

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

PANW

-19.72

Software Industry

Max
67.02
Q3
19.86
Median
0.70
Q1
-12.50
Min
-53.00

PANW has a negative Interest Coverage Ratio of -19.72. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.

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

Financial Strength at a Glance

SymbolCTSHPANW
Current Ratio (MRQ)2.410.90
Quick Ratio (MRQ)2.410.83
Debt-to-Equity Ratio (MRQ)0.040.05
Interest Coverage Ratio (TTM)100.81-19.72

Growth

Revenue Growth

CTSH vs. PANW: 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. PANW: 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

1.78%

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.

PANW

0.00%

Software Industry

Max
0.08%
Q3
0.03%
Median
0.00%
Q1
0.00%
Min
0.00%

PANW 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.

CTSH vs. PANW: A comparison of their Dividend Yield (TTM) against their respective IT Services and Software 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.

PANW

0.00%

Software Industry

Max
1.32%
Q3
0.53%
Median
0.00%
Q1
0.00%
Min
0.00%

PANW 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.

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

Dividend at a Glance

SymbolCTSHPANW
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.

PANW

94.58

Software Industry

Max
149.35
Q3
100.21
Median
47.97
Q1
26.77
Min
11.68

PANW’s P/E Ratio of 94.58 is within the middle range for the Software 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. PANW: A comparison of their Price-to-Earnings Ratio (TTM) against their respective IT Services and Software industry benchmarks.

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.

PANW

13.19

Software Industry

Max
25.24
Q3
13.52
Median
8.15
Q1
4.87
Min
0.98

PANW’s P/S Ratio of 13.19 aligns with the market consensus for the Software industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

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

PANW

17.12

Software Industry

Max
30.95
Q3
14.91
Median
7.75
Q1
3.60
Min
0.38

PANW’s P/B Ratio of 17.12 is in the upper tier for the Software industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

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

Valuation at a Glance

SymbolCTSHPANW
Price-to-Earnings Ratio (TTM)14.0094.58
Price-to-Sales Ratio (TTM)1.6713.19
Price-to-Book Ratio (MRQ)2.5217.12
Price-to-Free Cash Flow Ratio (TTM)14.9539.02