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CTSH vs. WDAY: Cognizant vs. Workday Stock Comparison

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

Company profile comparison for Cognizant (CTSH) and Workday (WDAY)
Profile ItemCTSHWDAY
NameCognizant Technology Solutions Corp. Class A Common StockWorkday 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 USD46.49 billion USD
CurrencyUSDUSD
ExchangeNasdaqNasdaq
Listing DateJune 19, 1998October 12, 2012
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

CTSH
WDAY
GSPC
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Cognizant (CTSH) vs. Workday (WDAY), 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 Workday (WDAY). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Cognizant (CTSH) and Workday (WDAY)
MetricCTSHWDAY
Total Return (1Y)-10.80%-14.74%
Total Return (3Y, Annualized)1.40%-5.22%
Total Return (5Y, Annualized)-2.88%-8.14%

Risk Profile

Drawdown History

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

Risk Metrics

Risk profile metrics for Cognizant (CTSH) and Workday (WDAY)
MetricCTSHWDAY
Volatility (1Y, Annualized)43.62%54.35%
Beta (5Y)0.831.01
Max Drawdown (5Y)-56.08%-63.38%
Avg. Volume (3M)6.65M3.14M

Risk-Adjusted Performance

Risk-Return Positioning

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CTSH and WDAY 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 Workday (WDAY)
MetricCTSHWDAY
Sharpe Ratio (1Y)-0.35-0.35
Sortino Ratio (1Y)-0.50-0.54

Profitability

ROE (TTM)

Both Cognizant (CTSH) at 17.37% and Workday (WDAY) at 16.01% land near their industries’ usual ROE ranges, so capital efficiency looks broadly in line with peers on both sides.

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%

WDAY

Software & Services industry group

16.01%

Max
53.85%
Q3
17.90%
WDAY
16.01%
Median
6.59%
Q1
-9.59%
Min
-50.52%
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Cognizant (CTSH) vs. Workday (WDAY): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

Both Cognizant (CTSH) at 11.75% and Workday (WDAY) at 12.32% keep about the typical share of revenue as profit for their industries — neither bottom line stands out from peers.

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%

WDAY

Software & Services industry group

12.32%

Max
41.17%
Q3
15.28%
WDAY
12.32%
Median
4.63%
Q1
-5.42%
Min
-33.17%
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Cognizant (CTSH) vs. Workday (WDAY): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Both Cognizant (CTSH) at 16.30% and Workday (WDAY) at 11.82% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.

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%

WDAY

Software & Services industry group

11.82%

Max
46.89%
Q3
17.64%
WDAY
11.82%
Median
8.73%
Q1
-2.13%
Min
-30.45%
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Cognizant (CTSH) vs. Workday (WDAY): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Cognizant (CTSH) and Workday (WDAY)
MetricCTSHWDAY
ROE (TTM)17.37%16.01%
ROA (TTM)10.78%4.51%
Net Margin (TTM)11.75%12.32%
Operating Margin (TTM)16.30%11.82%
Gross Margin (TTM)33.42%75.80%

Growth

Revenue Growth

Workday (WDAY) at 13.10% is around its peer norm for revenue growth, while Cognizant (CTSH) at 6.95% drops into the bottom quartile, signaling weaker demand or pricing momentum.

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

EPS Growth

Both Cognizant (CTSH) at 1.11% and Workday (WDAY) at 32.82% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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

Growth Metrics

Growth metrics for Cognizant (CTSH) and Workday (WDAY)
MetricCTSHWDAY
Revenue Growth (YoY)6.95%13.10%
Revenue Growth (3Y CAGR)2.80%15.40%
EPS Growth (YoY)1.11%32.82%
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 Workday (WDAY) at 0.91 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for WDAY.

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

WDAY

Software & Services industry group

0.91

Max
5.11
Q3
2.77
Median
1.67
Q1
1.01
WDAY
0.91
Min
0.03
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Cognizant (CTSH) vs. Workday (WDAY): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Both Cognizant (CTSH) at 0.14 and Workday (WDAY) at 0.58 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

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

WDAY

Software & Services industry group

0.58

Max
2.52
Q3
1.13
WDAY
0.58
Median
0.40
Q1
0.07
Min
0.00
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Cognizant (CTSH) vs. Workday (WDAY): 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 Workday (WDAY)
MetricCTSHWDAY
Current Ratio (MRQ)2.220.91
Debt / Equity (MRQ)0.140.58
Net Debt / EBITDA0.140.23

Dividends

Dividend Yield (TTM)

Workday (WDAY) 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%

WDAY

Software & Services industry group

0.00%

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

Dividend Payout Ratio (TTM)

Workday (WDAY) 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%

WDAY

Software & Services industry group

0.00%

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

Dividend Metrics

Dividend metrics for Cognizant (CTSH) and Workday (WDAY)
MetricCTSHWDAY
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 Workday (WDAY) at 39.29 is closer to its industry’s usual earnings multiple — a discount for CTSH, though growth and earnings durability still matter.

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

WDAY

Software & Services industry group

39.29

Max
112.94
Q3
60.32
WDAY
39.29
Median
32.91
Q1
18.77
Min
6.69
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Cognizant (CTSH) vs. Workday (WDAY): 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 Workday (WDAY) at 4.58 prices around its industry’s middle — CTSH costs less per dollar of sales, though read it alongside growth and margins.

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

WDAY

Software & Services industry group

4.58

Max
17.91
Q3
8.78
WDAY
4.58
Median
4.25
Q1
2.23
Min
0.02
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Cognizant (CTSH) vs. Workday (WDAY): A comparison of their P/S ratio against the Software & Services industry group benchmark.

P/B Ratio (MRQ)

On P/B ratio, both Cognizant (CTSH) at 1.97 and Workday (WDAY) at 7.20 are valued close to their industries’ norm against book — neither stands out from peers.

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

WDAY

Software & Services industry group

7.20

Max
16.63
Q3
8.50
WDAY
7.20
Median
4.30
Q1
1.92
Min
-3.90
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Cognizant (CTSH) vs. Workday (WDAY): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Cognizant (CTSH) and Workday (WDAY)
MetricCTSHWDAY
P/E Ratio (TTM)11.8139.29
P/S Ratio (TTM)1.324.58
P/B Ratio (MRQ)1.977.20
Free Cash Flow Yield (TTM)7.19%6.55%