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CTSH vs. PLTR: Cognizant vs. Palantir Stock Comparison

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

Cognizant (CTSH) has more than two decades of public-market history since June 19, 1998, whereas Palantir (PLTR) listed on September 30, 2020 and has a much shorter record to draw on.

Company profile comparison for Cognizant (CTSH) and Palantir (PLTR)
Profile ItemCTSHPLTR
NameCognizant Technology Solutions Corp. Class A Common StockPalantir Technologies Inc. Class A Common Stock
Country/RegionUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS Industry GroupSoftware & ServicesSoftware & Services
GICS IndustryIT ServicesSoftware
GICS Sub-IndustryIT Consulting & Other ServicesApplication Software
Market Capitalization28.93 billion USD386.44 billion USD
CurrencyUSDUSD
ExchangeNasdaqNasdaq
Listing DateJune 19, 1998September 30, 2020
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

CTSH
PLTR
GSPC
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Cognizant (CTSH) vs. Palantir (PLTR), 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 Palantir (PLTR). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Cognizant (CTSH) and Palantir (PLTR)
MetricCTSHPLTR
Total Return (1Y)-10.80%-4.94%
Total Return (3Y, Annualized)1.40%109.97%
Total Return (5Y, Annualized)-2.88%47.47%

Risk Profile

Drawdown History

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

Risk Metrics

Risk profile metrics for Cognizant (CTSH) and Palantir (PLTR)
MetricCTSHPLTR
Volatility (1Y, Annualized)43.62%60.50%
Beta (5Y)0.831.63
Max Drawdown (5Y)-56.08%-75.26%
Avg. Volume (3M)6.65M27.20M

Risk-Adjusted Performance

Risk-Return Positioning

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CTSH and PLTR 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 Palantir (PLTR)
MetricCTSHPLTR
Sharpe Ratio (1Y)-0.35-0.15
Sortino Ratio (1Y)-0.50-0.24

Profitability

ROE (TTM)

Palantir (PLTR) at 40.91% sits in the top ROE quartile, while Cognizant (CTSH) at 17.37% is closer to the peer norm — stronger capital efficiency for PLTR.

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%

PLTR

Software & Services industry group

40.91%

Max
53.85%
PLTR
40.91%
Q3
17.90%
Median
6.59%
Q1
-9.59%
Min
-50.52%
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Cognizant (CTSH) vs. Palantir (PLTR): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

Palantir (PLTR) at 50.34% converts revenue to bottom-line profit above its industry’s benchmark range, while Cognizant (CTSH) at 11.75% keeps roughly the typical share for its industry.

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%

PLTR

Software & Services industry group

50.34%

PLTR
50.34%
Max
41.17%
Q3
15.28%
Median
4.63%
Q1
-5.42%
Min
-33.17%
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Cognizant (CTSH) vs. Palantir (PLTR): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Palantir (PLTR) at 46.89% operates in the top operating margin quartile, ahead of Cognizant (CTSH) at 16.30%, which runs 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%

PLTR

Software & Services industry group

46.89%

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

Profitability Metrics

Profitability metrics for Cognizant (CTSH) and Palantir (PLTR)
MetricCTSHPLTR
ROE (TTM)17.37%40.91%
ROA (TTM)10.78%19.31%
Net Margin (TTM)11.75%50.34%
Operating Margin (TTM)16.30%46.89%
Gross Margin (TTM)33.42%84.74%

Growth

Revenue Growth

Palantir (PLTR) at 56.18% delivers above-range revenue growth, while Cognizant (CTSH) at 6.95% falls into the bottom quartile — a wide split in revenue momentum.

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Cognizant (CTSH) vs. Palantir (PLTR): A comparison of their Revenue Growth across different time periods.

EPS Growth

Palantir (PLTR) at 231.06% clears its industry range for EPS growth, a much stronger earnings trajectory than Cognizant (CTSH) at 1.11%, which is closer to a typical peer reading.

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

Growth Metrics

Growth metrics for Cognizant (CTSH) and Palantir (PLTR)
MetricCTSHPLTR
Revenue Growth (YoY)6.95%56.18%
Revenue Growth (3Y CAGR)2.80%32.92%
EPS Growth (YoY)1.11%231.06%
EPS Growth (3Y CAGR)1.12%--

Financial Strength

Current Ratio (MRQ)

Cognizant (CTSH) at 2.22 keeps current ratio within its industry’s typical mid-range, while Palantir (PLTR) at 7.10 sits above its industry’s typical mid-range — comfortable liquidity, though possibly with more idle current assets 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

PLTR

Software & Services industry group

7.10

PLTR
7.10
Max
5.11
Q3
2.77
Median
1.67
Q1
1.01
Min
0.03
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Cognizant (CTSH) vs. Palantir (PLTR): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Palantir (PLTR) at 0.02 keeps leverage in the lower industry quartile, while Cognizant (CTSH) at 0.14 runs a more typical debt-to-equity mix.

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

PLTR

Software & Services industry group

0.02

Max
2.52
Q3
1.13
Median
0.40
Q1
0.07
PLTR
0.02
Min
0.00
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Cognizant (CTSH) vs. Palantir (PLTR): 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 Palantir (PLTR)
MetricCTSHPLTR
Current Ratio (MRQ)2.227.10
Debt / Equity (MRQ)0.140.02
Net Debt / EBITDA0.14-3.08

Dividends

Dividend Yield (TTM)

Palantir (PLTR) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Cognizant (CTSH) reports a yield of 1.98%, ranking against industry peers normally.

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%

PLTR

Software & Services industry group

0.00%

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

Dividend Payout Ratio (TTM)

Palantir (PLTR) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Cognizant (CTSH) reports a payout of 23.72%, ranking against industry peers normally.

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%

PLTR

Software & Services industry group

0.00%

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

Dividend Metrics

Dividend metrics for Cognizant (CTSH) and Palantir (PLTR)
MetricCTSHPLTR
Dividend Yield (TTM)1.98%0.00%
Dividend Payout Ratio (TTM)23.72%0.00%

Valuation

P/E Ratio (TTM)

Cognizant (CTSH) at 11.81 sits in the cheaper P/E ratio quartile, while Palantir (PLTR) at 112.94 sits in the richer quartile — a clear split in what investors pay for each dollar of trailing earnings.

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

PLTR

Software & Services industry group

112.94

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

P/S Ratio (TTM)

Cognizant (CTSH) at 1.32 sits in the cheaper P/S ratio quartile while Palantir (PLTR) at 53.02 prices above its industry range — a wide gap in sales valuation between them.

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

PLTR

Software & Services industry group

53.02

PLTR
53.02
Max
17.91
Q3
8.78
Median
4.25
Q1
2.23
Min
0.02
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Cognizant (CTSH) vs. Palantir (PLTR): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

Cognizant (CTSH) at 1.97 sits near its industry’s typical P/B ratio, while Palantir (PLTR) at 34.41 prices above its benchmark range — PLTR looks rich relative to book.

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

PLTR

Software & Services industry group

34.41

PLTR
34.41
Max
16.63
Q3
8.50
Median
4.30
Q1
1.92
Min
-3.90
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Cognizant (CTSH) vs. Palantir (PLTR): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Cognizant (CTSH) and Palantir (PLTR)
MetricCTSHPLTR
P/E Ratio (TTM)11.81112.94
P/S Ratio (TTM)1.3253.02
P/B Ratio (MRQ)1.9734.41
Free Cash Flow Yield (TTM)7.19%0.69%