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CTSH vs. ZM: Cognizant vs. Zoom Communications Stock Comparison

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

Company profile comparison for Cognizant (CTSH) and Zoom Communications (ZM)
Profile ItemCTSHZM
NameCognizant Technology Solutions Corp. Class A Common StockZoom Communications, 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 USD26.23 billion USD
CurrencyUSDUSD
ExchangeNasdaqNasdaq
Listing DateJune 19, 1998April 18, 2019
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

CTSH
ZM
GSPC
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Cognizant (CTSH) vs. Zoom Communications (ZM), 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 Zoom Communications (ZM). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Cognizant (CTSH) and Zoom Communications (ZM)
MetricCTSHZM
Total Return (1Y)-10.80%12.58%
Total Return (3Y, Annualized)1.40%14.89%
Total Return (5Y, Annualized)-2.88%-18.67%

Risk Profile

Drawdown History

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

Risk Metrics

Risk profile metrics for Cognizant (CTSH) and Zoom Communications (ZM)
MetricCTSHZM
Volatility (1Y, Annualized)43.62%45.03%
Beta (5Y)0.830.99
Max Drawdown (5Y)-56.08%-79.08%
Avg. Volume (3M)6.65M2.88M

Risk-Adjusted Performance

Risk-Return Positioning

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CTSH and ZM 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 Zoom Communications (ZM)
MetricCTSHZM
Sharpe Ratio (1Y)-0.350.18
Sortino Ratio (1Y)-0.500.28

Profitability

ROE (TTM)

Zoom Communications (ZM) at 32.14% sits in the top ROE quartile, while Cognizant (CTSH) at 17.37% is closer to the peer norm — stronger capital efficiency for ZM.

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%

ZM

Software & Services industry group

32.14%

Max
53.85%
ZM
32.14%
Q3
17.90%
Median
6.59%
Q1
-9.59%
Min
-50.52%
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Cognizant (CTSH) vs. Zoom Communications (ZM): A comparison of their ROE against the Software & Services industry group benchmark.

Net Margin (TTM)

Zoom Communications (ZM) at 65.19% 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%

ZM

Software & Services industry group

65.19%

ZM
65.19%
Max
41.17%
Q3
15.28%
Median
4.63%
Q1
-5.42%
Min
-33.17%
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Cognizant (CTSH) vs. Zoom Communications (ZM): A comparison of their net margin against the Software & Services industry group benchmark.

Operating Margin (TTM)

Zoom Communications (ZM) at 24.61% 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%

ZM

Software & Services industry group

24.61%

Max
46.89%
ZM
24.61%
Q3
17.64%
Median
8.73%
Q1
-2.13%
Min
-30.45%
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Cognizant (CTSH) vs. Zoom Communications (ZM): A comparison of their operating margin against the Software & Services industry group benchmark.

Profitability Metrics

Profitability metrics for Cognizant (CTSH) and Zoom Communications (ZM)
MetricCTSHZM
ROE (TTM)17.37%32.14%
ROA (TTM)10.78%6.11%
Net Margin (TTM)11.75%65.19%
Operating Margin (TTM)16.30%24.61%
Gross Margin (TTM)33.42%77.66%

Growth

Revenue Growth

Both Cognizant (CTSH) at 6.95% and Zoom Communications (ZM) at 4.36% post bottom-quartile revenue growth versus peers, pointing to weaker demand or pricing momentum than typical rivals.

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Cognizant (CTSH) vs. Zoom Communications (ZM): A comparison of their Revenue Growth across different time periods.

EPS Growth

Zoom Communications (ZM) at 92.52% sits in the top EPS growth quartile, while Cognizant (CTSH) at 1.11% is closer to the peer norm — faster per-share earnings growth for ZM.

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Cognizant (CTSH) vs. Zoom Communications (ZM): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Cognizant (CTSH) and Zoom Communications (ZM)
MetricCTSHZM
Revenue Growth (YoY)6.95%4.36%
Revenue Growth (3Y CAGR)2.80%3.49%
EPS Growth (YoY)1.11%92.52%
EPS Growth (3Y CAGR)1.12%162.93%

Financial Strength

Current Ratio (MRQ)

Cognizant (CTSH) at 2.22 keeps current ratio within its industry’s typical mid-range, while Zoom Communications (ZM) at 3.83 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

ZM

Software & Services industry group

3.83

Max
5.11
ZM
3.83
Q3
2.77
Median
1.67
Q1
1.01
Min
0.03
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Cognizant (CTSH) vs. Zoom Communications (ZM): A comparison of their current ratio against the Software & Services industry group benchmark.

Debt / Equity (MRQ)

Zoom Communications (ZM) at 0.01 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

ZM

Software & Services industry group

0.01

Max
2.52
Q3
1.13
Median
0.40
Q1
0.07
ZM
0.01
Min
0.00
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Cognizant (CTSH) vs. Zoom Communications (ZM): 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 Zoom Communications (ZM)
MetricCTSHZM
Current Ratio (MRQ)2.223.83
Debt / Equity (MRQ)0.140.01
Net Debt / EBITDA0.14-5.39

Dividends

Dividend Yield (TTM)

Zoom Communications (ZM) 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%

ZM

Software & Services industry group

0.00%

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

Dividend Payout Ratio (TTM)

Zoom Communications (ZM) 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%

ZM

Software & Services industry group

0.00%

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

Dividend Metrics

Dividend metrics for Cognizant (CTSH) and Zoom Communications (ZM)
MetricCTSHZM
Dividend Yield (TTM)1.98%0.00%
Dividend Payout Ratio (TTM)23.72%0.00%

Valuation

P/E Ratio (TTM)

Both Cognizant (CTSH) at 11.81 and Zoom Communications (ZM) at 8.34 sit in the cheaper earnings-multiple quartile for P/E ratio, with the market paying less for a dollar of trailing earnings than it pays for typical peers.

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

ZM

Software & Services industry group

8.34

Max
112.94
Q3
60.32
Median
32.91
Q1
18.77
ZM
8.34
Min
6.69
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Cognizant (CTSH) vs. Zoom Communications (ZM): 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 Zoom Communications (ZM) at 5.25 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

ZM

Software & Services industry group

5.25

Max
17.91
Q3
8.78
ZM
5.25
Median
4.25
Q1
2.23
Min
0.02
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Cognizant (CTSH) vs. Zoom Communications (ZM): 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 Zoom Communications (ZM) at 2.32 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

ZM

Software & Services industry group

2.32

Max
16.63
Q3
8.50
Median
4.30
ZM
2.32
Q1
1.92
Min
-3.90
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Cognizant (CTSH) vs. Zoom Communications (ZM): A comparison of their P/B ratio against the Software & Services industry group benchmark.

Valuation Metrics

Valuation metrics for Cognizant (CTSH) and Zoom Communications (ZM)
MetricCTSHZM
P/E Ratio (TTM)11.818.34
P/S Ratio (TTM)1.325.25
P/B Ratio (MRQ)1.972.32
Free Cash Flow Yield (TTM)7.19%7.53%