CTSH vs. UMC: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at CTSH and UMC, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
CTSH is a standard domestic listing, while UMC trades as an American Depositary Receipt (ADR), offering U.S. investors access to its foreign-listed shares.
| Symbol | CTSH | UMC |
|---|---|---|
| Company Name | Cognizant Technology Solutions Corporation | United Microelectronics Corporation |
| Country | United States | Taiwan |
| GICS Sector | Information Technology | Information Technology |
| GICS Industry | IT Services | Semiconductors & Semiconductor Equipment |
| Market Capitalization | 35.54 billion USD | 17.77 billion USD |
| Exchange | NasdaqGS | NYSE |
| Listing Date | June 19, 1998 | September 19, 2000 |
| Security Type | Common Stock | ADR |
Historical Performance
This chart compares the performance of CTSH and UMC 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 | UMC |
|---|---|---|
| 5-Day Price Return | -0.36% | -2.32% |
| 13-Week Price Return | 3.74% | 8.61% |
| 26-Week Price Return | -10.64% | -4.95% |
| 52-Week Price Return | -11.78% | 8.46% |
| Month-to-Date Return | -0.36% | -4.85% |
| Year-to-Date Return | -5.57% | 2.56% |
| 10-Day Avg. Volume | 4.85M | 46.40M |
| 3-Month Avg. Volume | 4.31M | 39.83M |
| 3-Month Volatility | 24.33% | 21.77% |
| Beta | 0.98 | 0.25 |
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.
UMC
10.95%
Semiconductors & Semiconductor Equipment Industry
- Max
- 49.05%
- Q3
- 22.19%
- Median
- 7.96%
- Q1
- 0.99%
- Min
- -15.65%
UMC’s Return on Equity of 10.95% is on par with the norm for the Semiconductors & Semiconductor Equipment industry, indicating its profitability relative to shareholder equity is typical for the sector.
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.
UMC
17.01%
Semiconductors & Semiconductor Equipment Industry
- Max
- 52.41%
- Q3
- 24.47%
- Median
- 11.88%
- Q1
- 0.60%
- Min
- -25.46%
UMC’s Net Profit Margin of 17.01% is aligned with the median group of its peers in the Semiconductors & Semiconductor Equipment industry. This indicates its ability to convert revenue into profit is typical for the sector.
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.
UMC
18.50%
Semiconductors & Semiconductor Equipment Industry
- Max
- 58.09%
- Q3
- 27.76%
- Median
- 12.14%
- Q1
- 3.29%
- Min
- -32.60%
UMC’s Operating Profit Margin of 18.50% is around the midpoint for the Semiconductors & Semiconductor Equipment industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | CTSH | UMC |
|---|---|---|
| Return on Equity (TTM) | 14.31% | 10.95% |
| Return on Assets (TTM) | 10.61% | 7.15% |
| Net Profit Margin (TTM) | 10.20% | 17.01% |
| Operating Profit Margin (TTM) | 15.76% | 18.50% |
| Gross Profit Margin (TTM) | 34.06% | 28.92% |
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.
UMC
2.34
Semiconductors & Semiconductor Equipment Industry
- Max
- 6.57
- Q3
- 4.28
- Median
- 2.86
- Q1
- 2.22
- Min
- 1.02
UMC’s Current Ratio of 2.34 aligns with the median group of the Semiconductors & Semiconductor Equipment 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.
UMC
0.25
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.18
- Q3
- 0.48
- Median
- 0.24
- Q1
- 0.01
- Min
- 0.00
UMC’s Debt-to-Equity Ratio of 0.25 is typical for the Semiconductors & Semiconductor Equipment 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.
UMC
313.16
Semiconductors & Semiconductor Equipment Industry
- Max
- 174.00
- Q3
- 81.21
- Median
- 22.37
- Q1
- 6.43
- Min
- -7.80
With an Interest Coverage Ratio of 313.16, UMC demonstrates a superior capacity to service its debt, placing it well above the typical range for the Semiconductors & Semiconductor Equipment industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | CTSH | UMC |
|---|---|---|
| Current Ratio (MRQ) | 2.36 | 2.34 |
| Quick Ratio (MRQ) | 2.36 | 1.88 |
| Debt-to-Equity Ratio (MRQ) | 0.04 | 0.25 |
| Interest Coverage Ratio (TTM) | 100.81 | 313.16 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
CTSH
1.73%
IT Services Industry
- Max
- 4.66%
- Q3
- 2.02%
- Median
- 0.66%
- Q1
- 0.00%
- Min
- 0.00%
CTSH’s Dividend Yield of 1.73% is consistent with its peers in the IT Services industry, providing a dividend return that is standard for its sector.
UMC
6.46%
Semiconductors & Semiconductor Equipment Industry
- Max
- 3.58%
- Q3
- 1.59%
- Median
- 0.61%
- Q1
- 0.00%
- Min
- 0.00%
UMC’s Dividend Yield of 6.46% is exceptionally high, placing it well above the typical range for the Semiconductors & Semiconductor Equipment industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.
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.
UMC
152.43%
Semiconductors & Semiconductor Equipment Industry
- Max
- 211.90%
- Q3
- 88.01%
- Median
- 25.84%
- Q1
- 0.00%
- Min
- 0.00%
UMC’s Dividend Payout Ratio of 152.43% is in the upper quartile for the Semiconductors & Semiconductor Equipment industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | CTSH | UMC |
|---|---|---|
| Dividend Yield (TTM) | 1.73% | 6.46% |
| Dividend Payout Ratio (TTM) | 28.62% | 152.43% |
Valuation
Price-to-Earnings Ratio (TTM)
CTSH
16.50
IT Services Industry
- Max
- 45.03
- Q3
- 30.25
- Median
- 21.01
- Q1
- 16.50
- Min
- 0.00
CTSH’s P/E Ratio of 16.50 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.
UMC
13.80
Semiconductors & Semiconductor Equipment Industry
- Max
- 95.58
- Q3
- 58.67
- Median
- 34.77
- Q1
- 25.45
- Min
- 12.63
In the lower quartile for the Semiconductors & Semiconductor Equipment industry, UMC’s P/E Ratio of 13.80 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Price-to-Sales Ratio (TTM)
CTSH
1.68
IT Services Industry
- Max
- 5.24
- Q3
- 4.01
- Median
- 2.18
- Q1
- 1.08
- Min
- 0.00
CTSH’s P/S Ratio of 1.68 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.
UMC
2.35
Semiconductors & Semiconductor Equipment Industry
- Max
- 18.34
- Q3
- 10.38
- Median
- 5.38
- Q1
- 2.49
- Min
- 0.32
In the lower quartile for the Semiconductors & Semiconductor Equipment industry, UMC’s P/S Ratio of 2.35 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
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.
UMC
1.58
Semiconductors & Semiconductor Equipment Industry
- Max
- 16.22
- Q3
- 8.33
- Median
- 4.39
- Q1
- 1.79
- Min
- 0.30
UMC’s P/B Ratio of 1.58 is in the lower quartile for the Semiconductors & Semiconductor Equipment 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.
Valuation at a Glance
| Symbol | CTSH | UMC |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 16.50 | 13.80 |
| Price-to-Sales Ratio (TTM) | 1.68 | 2.35 |
| Price-to-Book Ratio (MRQ) | 2.20 | 1.58 |
| Price-to-Free Cash Flow Ratio (TTM) | 13.24 | 12.20 |