In the rapidly evolving technology landscape, two companies stand out for their innovative approaches: Cognizant Technology Solutions (CTSH) and Atlassian Corporation (TEAM). Both operate in the technology sector but cater to different aspects; Cognizant focuses on professional services and consulting, while Atlassian specializes in software applications for project management and collaboration. This comparison will shed light on their strategies and market potential, ultimately helping you determine which company might be the more compelling investment opportunity.
Table of contents
Company Overview
Cognizant Technology Solutions Corporation Overview
Cognizant Technology Solutions Corporation (CTSH) is a leading professional services firm specializing in consulting, technology, and outsourcing solutions. Founded in 1994 and headquartered in Teaneck, NJ, Cognizant operates across key sectors, including Financial Services, Healthcare, and Communications, Media, and Technology. The firm focuses on enhancing customer experiences, leveraging automation, analytics, and AI to drive innovation and operational efficiencies for its clients. With a market capitalization of approximately $37.3B and a workforce of about 336K employees, Cognizant positions itself as a vital partner for enterprises navigating digital transformation and evolving market demands.
Atlassian Corporation Overview
Atlassian Corporation (TEAM) is a prominent software company founded in 2002, headquartered in Sydney, Australia. It specializes in developing collaboration and productivity software, including popular tools like Jira and Confluence, which facilitate project management and team collaboration. With a market cap of roughly $38.4B and a workforce of around 12K employees, Atlassian aims to empower teams by improving visibility and agility in their workflows. The company’s focus on enhancing service management and enterprise agility solutions positions it as a key player in the software application industry.
Key Similarities and Differences
Both Cognizant and Atlassian operate within the technology sector, but their business models differ significantly. Cognizant emphasizes consulting and outsourcing services, providing tailored solutions across various industries. In contrast, Atlassian focuses on software development, offering tools that enhance collaboration and project management for teams across sectors. While both companies are poised for growth in the digital transformation space, their approaches cater to distinct market needs.
Income Statement Comparison
The following table provides a comparative overview of the most recent income statements for Cognizant Technology Solutions Corporation (CTSH) and Atlassian Corporation (TEAM), highlighting key financial metrics.
| Metric | Cognizant Technology Solutions (CTSH) | Atlassian Corporation (TEAM) |
|---|---|---|
| Revenue | 19.74B | 5.22B |
| EBITDA | 3.53B | 24M |
| EBIT | 2.99B | -68M |
| Net Income | 2.24B | -257M |
| EPS | 4.52 | -0.98 |
Interpretation of Income Statement
In the latest fiscal year, Cognizant reported a revenue increase to 19.74B, reflecting stable growth compared to the previous year. Net income also rose to 2.24B, indicating solid profitability. In contrast, Atlassian’s revenue reached 5.22B, but it faced significant losses, with a net income of -257M, showcasing challenges in profitability and operational efficiency. The stark differences in margin performance highlight Cognizant’s strength, while Atlassian’s struggles may warrant cautious consideration for investors focused on profitability and risk management.
Financial Ratios Comparison
The following table presents a comparative analysis of key financial metrics for Cognizant Technology Solutions Corporation (CTSH) and Atlassian Corporation (TEAM), based on the most recent data.
| Metric | CTSH | TEAM |
|---|---|---|
| ROE | 15.55% | -19.08% |
| ROIC | 13.24% | -11.63% |
| P/E | 17.03 | -88.32 |
| P/B | 2.65 | 65.67 |
| Current Ratio | 2.09 | 1.22 |
| Quick Ratio | 2.09 | 1.22 |
| D/E | 0.10 | 1.96 |
| Debt-to-Assets | 0.08 | 0.31 |
| Interest Coverage | 53.56 | -4.27 |
| Asset Turnover | 0.99 | 0.86 |
| Fixed Asset Turnover | 12.77 | 19.02 |
| Payout Ratio | 26.79% | 0% |
| Dividend Yield | 1.57% | 0% |
Interpretation of Financial Ratios
Cognizant displays strong financial health with solid ROE and ROIC, indicating effective management of equity and capital. In contrast, Atlassian’s negative ratios, particularly in profitability and leverage, signal financial distress and higher risk, raising concerns for potential investors.
Dividend and Shareholder Returns
Cognizant Technology Solutions (CTSH) pays a dividend with a payout ratio of approximately 27%, yielding about 1.57%. The company has maintained a steady dividend per share trend, supported by healthy free cash flow. However, risks include potential unsustainable distributions if earnings decline.
Conversely, Atlassian (TEAM) does not pay dividends, focusing instead on reinvestment for growth during its high-growth phase. Despite this, it conducts share buybacks to enhance shareholder value. This strategy may align with long-term value creation if managed wisely.
Strategic Positioning
Cognizant Technology Solutions (CTSH) holds a significant market share in the IT services sector, with a market cap of $37.3B. The competitive landscape is intense, particularly with the rise of advanced AI and automation technologies. In contrast, Atlassian (TEAM), valued at $38.4B, leads in software applications, specifically project management tools, but faces pressure from emerging SaaS competitors. Both companies must navigate technological disruptions while leveraging their existing strengths to maintain market leadership.
Stock Comparison
In this section, I will analyze the weekly stock price movements of Cognizant Technology Solutions Corporation (CTSH) and Atlassian Corporation (TEAM) over the past year, highlighting key price dynamics and overall trading trends.
Trend Analysis
Cognizant Technology Solutions Corporation (CTSH) Over the past year, CTSH has experienced a percentage change of +0.6%. This reflects a bullish trend, characterized by a notable acceleration in price movements. The stock reached its highest price at 90.7 and its lowest at 64.26. The volatility, indicated by a standard deviation of 5.2, suggests moderate fluctuations in its price. In the recent period from September 7 to November 23, 2025, the stock’s price change was +5.79%, with a standard deviation of 3.24, further confirming the acceleration of the upward trend.
Atlassian Corporation (TEAM) In contrast, TEAM has faced a significant decline, with a percentage change of -38.5% over the past year, indicating a bearish trend. The stock’s highest price reached 314.28, while the lowest was 141.43. The volatility is notably high, with a standard deviation of 39.96, showing extreme fluctuations in its price. For the recent period from September 7 to November 23, 2025, the stock’s price change was -15.17%, and the trend shows deceleration with a slope of -1.8. This further emphasizes the challenges TEAM is currently facing in the market.
In summary, CTSH is showing positive momentum and increasing buyer dominance, while TEAM is under pressure with declining prices and seller dominance in recent trades.
Analyst Opinions
Recent analyst recommendations indicate a mixed sentiment for Cognizant Technology Solutions Corporation (CTSH) and Atlassian Corporation (TEAM). Analysts have rated CTSH with an “A” grade, emphasizing strong performance in return on assets and equity, suggesting a “buy” consensus. In contrast, TEAM received a “C” rating with concerns over its financial metrics, leading to a “hold” recommendation. Notably, analysts like those from major investment firms have highlighted CTSH’s robust fundamentals, while TEAM’s weaker scores raise caution. Overall, consensus for CTSH is a buy, while TEAM remains a hold.
Stock Grades
In the current market, stock ratings can provide valuable insights into potential investment opportunities. Here’s a look at the recent grades for two notable companies.
Cognizant Technology Solutions Corporation (CTSH) Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| William Blair | upgrade | Outperform | 2025-11-21 |
| Wells Fargo | maintain | Overweight | 2025-10-30 |
| JP Morgan | maintain | Overweight | 2025-10-30 |
| UBS | maintain | Neutral | 2025-10-30 |
| RBC Capital | maintain | Sector Perform | 2025-10-30 |
| Guggenheim | maintain | Buy | 2025-10-21 |
| JP Morgan | maintain | Overweight | 2025-08-20 |
| JP Morgan | maintain | Overweight | 2025-07-31 |
| JP Morgan | maintain | Overweight | 2025-07-28 |
| Guggenheim | upgrade | Buy | 2025-07-18 |
Atlassian Corporation (TEAM) Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Bernstein | maintain | Outperform | 2025-11-18 |
| Macquarie | maintain | Outperform | 2025-11-03 |
| Mizuho | maintain | Outperform | 2025-10-31 |
| Bernstein | maintain | Outperform | 2025-10-31 |
| TD Cowen | maintain | Hold | 2025-10-27 |
| BMO Capital | maintain | Outperform | 2025-10-24 |
| UBS | maintain | Neutral | 2025-10-24 |
| Keybanc | maintain | Overweight | 2025-10-23 |
| Canaccord Genuity | maintain | Buy | 2025-10-22 |
| BWG Global | upgrade | Positive | 2025-10-14 |
Overall, Cognizant Technology Solutions is experiencing a positive upward trend with recent upgrades, while Atlassian Corporation maintains strong ratings with several firms reiterating their outperform ratings. This suggests a favorable outlook for investors considering these stocks for their portfolios.
Target Prices
Recent reliable target price data from analysts indicates a strong consensus for both Cognizant Technology Solutions Corporation (CTSH) and Atlassian Corporation (TEAM).
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Cognizant Technology Solutions Corporation (CTSH) | 85 | 78 | 82.8 |
| Atlassian Corporation (TEAM) | 300 | 185 | 232.85 |
For Cognizant (CTSH), the consensus target price of 82.8 suggests potential upside from its current price of 75.98. Meanwhile, Atlassian (TEAM) shows a target consensus of 232.85, indicating significant growth potential compared to its current price of 146.28. Overall, analysts maintain a positive outlook for both companies.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of Cognizant Technology Solutions Corporation (CTSH) and Atlassian Corporation (TEAM) based on the most recent data.
| Criterion | Cognizant Technology Solutions (CTSH) | Atlassian Corporation (TEAM) |
|---|---|---|
| Diversification | High across multiple sectors | Limited to software products |
| Profitability | Net Profit Margin: 11.35% | Negative Net Profit Margin: -4.92% |
| Innovation | Strong in AI and automation | Robust software development |
| Global presence | Operates in North America and Europe | Primarily in the US and Australia |
| Market Share | Significant in IT services | Niche in project management |
| Debt level | Low Debt-to-Equity Ratio: 0.10 | High Debt-to-Equity Ratio: 1.21 |
Key takeaways from this analysis reveal that while Cognizant demonstrates strong profitability and diversification, Atlassian’s innovation and software focus present unique opportunities despite its current financial challenges.
Risk Analysis
Below is a table summarizing the key risks associated with Cognizant Technology Solutions Corporation (CTSH) and Atlassian Corporation (TEAM).
| Metric | Cognizant Technology Solutions (CTSH) | Atlassian Corporation (TEAM) |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Low | Moderate |
| Operational Risk | Moderate | High |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | Low | High |
In summary, Atlassian faces higher operational and market risks compared to Cognizant, which has a more stable outlook. Recent reports indicate Atlassian’s significant operational challenges, including negative profit margins, which could heavily impact its stock performance.
Which one to choose?
When comparing Cognizant Technology Solutions (CTSH) and Atlassian Corporation (TEAM), the fundamentals indicate that CTSH appears more favorable for long-term investors. CTSH has a solid market cap of $38.1B and a strong profitability profile with a net profit margin of 11.35% and a rating of “A” from analysts, reflecting robust financial health. In contrast, TEAM has faced a challenging period, with a bearish trend showing a price drop of 38.5% and an overall rating of “C,” suggesting concerns about its operational efficiency and profitability.
For investors focused on growth, I recommend considering CTSH due to its strong fundamentals and positive stock trend. However, those prioritizing speculative opportunities may look into TEAM, albeit with caution due to its current instability.
The primary risk for both companies revolves around market dependence and competition in the tech industry, which could impact their growth trajectories.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of Cognizant Technology Solutions Corporation and Atlassian Corporation to enhance your investment decisions:
