CTSH vs. PTC: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at CTSH and PTC, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | CTSH | PTC |
|---|---|---|
| Company Name | Cognizant Technology Solutions Corporation | PTC Inc. |
| Country | United States | United States |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | IT Services | Software |
| Market Capitalization | 35.18 billion USD | 21.26 billion USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | June 19, 1998 | December 8, 1989 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of CTSH and PTC 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 | PTC |
|---|---|---|
| 5-Day Price Return | 0.10% | -7.57% |
| 13-Week Price Return | 5.39% | -12.69% |
| 26-Week Price Return | -6.48% | 10.21% |
| 52-Week Price Return | -10.42% | -6.61% |
| Month-to-Date Return | 0.00% | -10.60% |
| Year-to-Date Return | -5.23% | -3.47% |
| 10-Day Avg. Volume | 6.30M | 1.07M |
| 3-Month Avg. Volume | 4.25M | 1.00M |
| 3-Month Volatility | 24.66% | 23.91% |
| Beta | 0.98 | 1.03 |
Profitability
Return on Equity (TTM)
CTSH
14.31%
IT Services Industry
- Max
- 32.78%
- Q3
- 19.28%
- Median
- 13.86%
- Q1
- 5.50%
- Min
- -10.00%
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.
PTC
21.23%
Software Industry
- Max
- 66.28%
- Q3
- 21.28%
- Median
- 9.33%
- Q1
- -8.77%
- Min
- -48.16%
PTC’s Return on Equity of 21.23% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
CTSH
10.20%
IT Services Industry
- Max
- 19.71%
- Q3
- 11.01%
- Median
- 6.66%
- Q1
- 2.96%
- Min
- -6.22%
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.
PTC
27.05%
Software Industry
- Max
- 51.92%
- Q3
- 19.23%
- Median
- 6.98%
- Q1
- -7.14%
- Min
- -41.00%
A Net Profit Margin of 27.05% places PTC in the upper quartile for the Software 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
- 22.44%
- Q3
- 14.90%
- Median
- 8.82%
- Q1
- 4.91%
- Min
- -9.89%
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.
PTC
35.86%
Software Industry
- Max
- 60.40%
- Q3
- 21.25%
- Median
- 9.90%
- Q1
- -4.97%
- Min
- -43.50%
An Operating Profit Margin of 35.86% places PTC in the upper quartile for the Software 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 | PTC |
|---|---|---|
| Return on Equity (TTM) | 14.31% | 21.23% |
| Return on Assets (TTM) | 10.61% | 11.81% |
| Net Profit Margin (TTM) | 10.20% | 27.05% |
| Operating Profit Margin (TTM) | 15.76% | 35.86% |
| Gross Profit Margin (TTM) | 34.06% | 83.76% |
Financial Strength
Current Ratio (MRQ)
CTSH
2.36
IT Services Industry
- Max
- 3.17
- Q3
- 2.00
- Median
- 1.47
- Q1
- 1.05
- Min
- 0.52
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.
PTC
1.43
Software Industry
- Max
- 4.29
- Q3
- 2.37
- Median
- 1.40
- Q1
- 1.03
- Min
- 0.25
PTC’s Current Ratio of 1.43 aligns with the median group of the Software 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
- 3.11
- Q3
- 1.55
- Median
- 0.55
- Q1
- 0.17
- 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.
PTC
0.31
Software Industry
- Max
- 2.16
- Q3
- 0.86
- Median
- 0.31
- Q1
- 0.00
- Min
- 0.00
PTC’s Debt-to-Equity Ratio of 0.31 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.
Interest Coverage Ratio (TTM)
CTSH
100.81
IT Services Industry
- Max
- 129.00
- Q3
- 56.00
- Median
- 11.69
- Q1
- 0.77
- 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.
PTC
5.07
Software Industry
- Max
- 89.65
- Q3
- 32.64
- Median
- 1.00
- Q1
- -9.84
- Min
- -71.23
PTC’s Interest Coverage Ratio of 5.07 is positioned comfortably within the norm for the Software industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | CTSH | PTC |
|---|---|---|
| Current Ratio (MRQ) | 2.36 | 1.43 |
| Quick Ratio (MRQ) | 2.36 | 1.43 |
| Debt-to-Equity Ratio (MRQ) | 0.04 | 0.31 |
| Interest Coverage Ratio (TTM) | 100.81 | 5.07 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
CTSH
1.75%
IT Services Industry
- Max
- 2.79%
- Q3
- 1.76%
- Median
- 0.58%
- Q1
- 0.00%
- Min
- 0.00%
CTSH’s Dividend Yield of 1.75% is consistent with its peers in the IT Services industry, providing a dividend return that is standard for its sector.
PTC
0.00%
Software Industry
- Max
- 0.22%
- Q3
- 0.11%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
PTC 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
28.62%
IT Services Industry
- Max
- 107.85%
- Q3
- 52.62%
- Median
- 22.53%
- 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.
PTC
0.00%
Software Industry
- Max
- 3.29%
- Q3
- 2.41%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
PTC 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 | PTC |
|---|---|---|
| Dividend Yield (TTM) | 1.75% | 0.00% |
| Dividend Payout Ratio (TTM) | 28.62% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
CTSH
16.35
IT Services Industry
- Max
- 56.41
- Q3
- 33.17
- Median
- 23.17
- Q1
- 16.18
- Min
- 6.62
CTSH’s P/E Ratio of 16.35 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.
PTC
28.47
Software Industry
- Max
- 145.74
- Q3
- 94.88
- Median
- 45.35
- Q1
- 26.66
- Min
- 8.80
PTC’s P/E Ratio of 28.47 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.
Price-to-Sales Ratio (TTM)
CTSH
1.67
IT Services Industry
- Max
- 5.99
- Q3
- 4.26
- Median
- 1.93
- Q1
- 0.97
- Min
- 0.12
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.
PTC
7.70
Software Industry
- Max
- 25.67
- Q3
- 13.68
- Median
- 8.28
- Q1
- 4.95
- Min
- 0.90
PTC’s P/S Ratio of 7.70 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.
Price-to-Book Ratio (MRQ)
CTSH
2.20
IT Services Industry
- Max
- 12.34
- Q3
- 7.54
- Median
- 3.84
- Q1
- 2.52
- Min
- 0.88
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.
PTC
6.34
Software Industry
- Max
- 30.67
- Q3
- 14.92
- Median
- 8.52
- Q1
- 3.89
- Min
- 0.38
PTC’s P/B Ratio of 6.34 is within the conventional range for the Software 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 | PTC |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 16.35 | 28.47 |
| Price-to-Sales Ratio (TTM) | 1.67 | 7.70 |
| Price-to-Book Ratio (MRQ) | 2.20 | 6.34 |
| Price-to-Free Cash Flow Ratio (TTM) | 13.12 | 24.63 |