In the ever-evolving landscape of technology, two companies stand out for their innovative approaches and market presence: Cognizant Technology Solutions Corporation (CTSH) and CrowdStrike Holdings, Inc. (CRWD). While both operate within the technology sector, their focus diverges significantly—Cognizant excels in IT services and consulting, whereas CrowdStrike specializes in cybersecurity solutions. This comparison will delve into their strategies, market positions, and growth potential to help you determine which company may be the most compelling investment opportunity.
Table of contents
Company Overview
Cognizant Technology Solutions Corporation Overview
Cognizant Technology Solutions Corporation (CTSH) operates as a leading professional services company, specializing in consulting, technology, and outsourcing solutions. Founded in 1994 and headquartered in Teaneck, New Jersey, Cognizant serves a diverse client base across sectors including Financial Services, Healthcare, and Communications, Media, and Technology. With a strong emphasis on digital transformation, the company leverages advanced technologies such as AI, analytics, and robotic process automation to enhance customer experiences and operational efficiencies. Cognizant’s robust market position is underscored by its commitment to delivering integrated, patient-centered healthcare solutions and innovative services that cater to various industries globally.
CrowdStrike Holdings, Inc. Overview
CrowdStrike Holdings, Inc. (CRWD) is a cybersecurity leader that provides cloud-delivered endpoint protection and threat intelligence solutions. Founded in 2011 and based in Austin, Texas, CrowdStrike is renowned for its Falcon platform, which offers comprehensive security measures including threat hunting, identity protection, and managed security services. With a focus on subscription-based models, the company has established itself as a trusted partner for organizations seeking to secure their cloud workloads and data against evolving cyber threats. CrowdStrike’s rapid growth and innovative approach to cybersecurity reflect its commitment to safeguarding digital assets in an increasingly complex threat landscape.
Key similarities and differences
Both Cognizant and CrowdStrike operate in the technology sector but focus on distinct areas. Cognizant emphasizes consulting and outsourcing services across various industries, while CrowdStrike specializes in cybersecurity solutions, particularly in endpoint protection. Their business models differ significantly, with Cognizant providing a broad range of IT services and CrowdStrike offering a subscription-based cybersecurity platform, showcasing their unique market positions.
Income Statement Comparison
The following table presents a comparison of the most recent income statements for Cognizant Technology Solutions Corporation (CTSH) and CrowdStrike Holdings, Inc. (CRWD), highlighting their financial performance metrics.
| Metric | Cognizant Technology Solutions (CTSH) | CrowdStrike Holdings (CRWD) |
|---|---|---|
| Market Cap | 39.67B | 129.00B |
| Revenue | 19.74B | 3.95B |
| EBITDA | 3.53B | 294.80M |
| EBIT | 2.99B | 80.85M |
| Net Income | 2.24B | -19.27M |
| EPS | 4.52 | -0.08 |
| Fiscal Year | 2024 | 2025 |
Interpretation of Income Statement
In the most recent fiscal year, Cognizant demonstrated stable revenue growth, increasing to 19.74B, with a corresponding rise in net income to 2.24B, reflecting improved margins. In contrast, CrowdStrike faced challenges, with revenue at 3.95B but a net loss of 19.27M, signaling potential operational inefficiencies. The decline in profitability indicates that CrowdStrike may need to focus on cost management and operational adjustments to restore positive earnings moving forward. The differences in performance highlight varying strategies and market conditions affecting each company’s financial health.
Financial Ratios Comparison
The following table presents a comparative analysis of key financial ratios for Cognizant Technology Solutions Corporation (CTSH) and CrowdStrike Holdings, Inc. (CRWD) based on the most recent data available.
| Metric | CTSH | CRWD |
|---|---|---|
| ROE | 15.55% | -0.59% |
| ROIC | 13.24% | 0.70% |
| P/E | 17.03 | -5055.66 |
| P/B | 2.65 | 29.71 |
| Current Ratio | 2.09 | 1.67 |
| Quick Ratio | 2.09 | 1.67 |
| D/E | 0.10 | 0.24 |
| Debt-to-Assets | 0.08 | 0.10 |
| Interest Coverage | 53.56 | -4.58 |
| Asset Turnover | 0.99 | 0.45 |
| Fixed Asset Turnover | 12.77 | 4.76 |
| Payout Ratio | 26.79% | 0% |
| Dividend Yield | 1.57% | 0% |
Interpretation of Financial Ratios
Cognizant exhibits strong financial health with robust return metrics (ROE and ROIC), low debt levels, and a solid current ratio, indicating good liquidity. Conversely, CrowdStrike faces significant challenges, marked by negative profitability ratios and high P/E, suggesting overvaluation relative to earnings. The lack of dividends also indicates a focus on reinvestment or cash management issues, warranting caution for potential investors.
Dividend and Shareholder Returns
Cognizant Technology Solutions (CTSH) maintains a dividend payout ratio of 27.8%, offering a dividend yield of approximately 1.6%. The company has a consistent history of increasing its dividend per share, supported by strong free cash flow. In contrast, CrowdStrike (CRWD) does not pay dividends, as it prioritizes reinvestment for growth and R&D, which aligns with its high-growth strategy. Both companies engage in share buybacks, though CTSH’s approach reflects a more balanced distribution strategy. Overall, CTSH’s dividend policy appears to foster sustainable long-term value, while CRWD’s reinvestment focus may yield future growth potential.
Strategic Positioning
Cognizant Technology Solutions (CTSH) holds a significant share in the information technology services market, focusing on consulting and technology solutions. In contrast, CrowdStrike (CRWD) leads in the software infrastructure sector, specializing in cloud-based cybersecurity. Both companies face competitive pressure, particularly from rapidly evolving technologies and emerging players. As digital transformation accelerates, they must continuously innovate to maintain their market positions amidst technological disruptions.
Stock Comparison
Over the past year, the stock prices of Cognizant Technology Solutions Corporation (CTSH) and CrowdStrike Holdings, Inc. (CRWD) have exhibited significant movements, reflecting their respective trading dynamics and market perceptions.
Trend Analysis
Cognizant Technology Solutions Corporation (CTSH) has experienced a price change of +3.41% over the past year, indicating a bullish trend. The stock has demonstrated acceleration in its price movement with notable highs of 90.7 and lows of 64.26. The overall volatility, measured by a standard deviation of 5.24, suggests moderate price fluctuations.
In the recent period from September 21, 2025, to December 7, 2025, CTSH recorded a price increase of +20.45%, further affirming its bullish trajectory. The trend slope of 1.28 indicates a consistent upward momentum, alongside a standard deviation of 4.81, showcasing a stable trading environment.
CrowdStrike Holdings, Inc. (CRWD) has shown a remarkable price change of +82.75% over the past year, also indicating a bullish trend. The stock has seen volatility with a standard deviation of 79.78, reflecting significant price movements. The highest price reached was 543.01, while the lowest was 217.89, underscoring the stock’s strong performance.
In the recent period from September 21, 2025, to December 7, 2025, CRWD recorded a price increase of +3.04%, indicating a continuation of its bullish trend. The trend slope of 2.88 suggests robust acceleration, although the higher standard deviation of 21.72 indicates increased volatility in recent trading activity.
Analyst Opinions
Recent analyst evaluations indicate a clear divergence between Cognizant Technology Solutions (CTSH) and CrowdStrike Holdings (CRWD). Analysts have given CTSH an “A” rating, supported by strong metrics in return on assets and equity, suggesting a consensus “buy” for 2025. Conversely, CRWD received a “C” rating, reflecting weaknesses in profitability metrics, leading to a general recommendation to “hold” as investors await better performance indicators. Notable analysts include those from major investment firms who emphasize CTSH’s solid fundamentals amidst a challenging market landscape.
Stock Grades
In the current landscape, several companies have received updated stock grades from reputable grading firms. Here’s an overview of the latest ratings.
Cognizant Technology Solutions Corporation (CTSH) Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| William Blair | upgrade | Outperform | 2025-11-21 |
| JP Morgan | maintain | Overweight | 2025-10-30 |
| RBC Capital | maintain | Sector Perform | 2025-10-30 |
| Wells Fargo | maintain | Overweight | 2025-10-30 |
| UBS | maintain | Neutral | 2025-10-30 |
| Guggenheim | maintain | Buy | 2025-10-21 |
| JP Morgan | maintain | Overweight | 2025-08-20 |
| Baird | maintain | Neutral | 2025-07-31 |
| JP Morgan | maintain | Overweight | 2025-07-31 |
| JP Morgan | maintain | Overweight | 2025-07-28 |
CrowdStrike Holdings, Inc. (CRWD) Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Goldman Sachs | maintain | Buy | 2025-12-04 |
| Citigroup | maintain | Buy | 2025-12-04 |
| Needham | maintain | Buy | 2025-12-03 |
| DA Davidson | maintain | Buy | 2025-12-03 |
| BTIG | maintain | Buy | 2025-12-03 |
| Cantor Fitzgerald | maintain | Overweight | 2025-12-03 |
| Citizens | maintain | Market Outperform | 2025-12-03 |
| Scotiabank | maintain | Sector Outperform | 2025-12-03 |
| JP Morgan | maintain | Overweight | 2025-12-03 |
| Rosenblatt | maintain | Buy | 2025-12-03 |
Overall, we see a positive trend for both CTSH and CRWD, with several firms maintaining strong ratings, indicating confidence in their future performance. Notably, CTSH received an upgrade to “Outperform,” reflecting optimism in its growth potential.
Target Prices
The current consensus among analysts indicates promising target prices for both Cognizant Technology Solutions Corporation (CTSH) and CrowdStrike Holdings, Inc. (CRWD).
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Cognizant Technology Solutions | 85 | 78 | 82.8 |
| CrowdStrike Holdings | 706 | 353 | 545.79 |
For Cognizant (CTSH), the consensus target price of 82.8 suggests a slight upside from its current price of approximately 80.72. In contrast, CrowdStrike (CRWD) has a consensus target of 545.79, indicating a potential for growth from its current price of around 517.73. Overall, analysts appear optimistic about both companies’ performance moving forward.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of Cognizant Technology Solutions Corporation (CTSH) and CrowdStrike Holdings, Inc. (CRWD).
| Criterion | Cognizant Technology Solutions (CTSH) | CrowdStrike Holdings (CRWD) |
|---|---|---|
| Diversification | Strong across multiple sectors | Focused on cybersecurity |
| Profitability | Net Profit Margin: 11.35% | Negative net profit margin |
| Innovation | High investment in AI and automation | Strong innovation in security tech |
| Global presence | Established in North America and Europe | Global customer base |
| Market Share | Significant in IT services sector | Rapidly growing in cybersecurity |
| Debt level | Low debt-to-equity ratio (0.10) | Moderate debt-to-equity ratio (0.24) |
Key takeaways highlight that while CTSH benefits from diversification and profitability, CRWD excels in innovation and market share growth in a focused segment. Investors should weigh these factors against their risk tolerance when considering investments in these companies.
Risk Analysis
In the following table, I outline the key risks associated with two companies, Cognizant Technology Solutions Corporation (CTSH) and CrowdStrike Holdings, Inc. (CRWD).
| Metric | CTSH | CRWD |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | Moderate | High |
| Operational Risk | Low | Moderate |
| Environmental Risk | Low | Moderate |
| Geopolitical Risk | Moderate | High |
Both companies face significant market and regulatory risks. CrowdStrike, with its high dependency on the cybersecurity sector, is particularly exposed to rapid changes in technology and regulatory environments, while Cognizant’s broader service offerings present moderate risk levels.
Which one to choose?
In comparing Cognizant Technology Solutions (CTSH) and CrowdStrike Holdings (CRWD), the data indicates that CTSH appears stronger based on financial fundamentals. With a market cap of $38.1B and a solid net profit margin of 11.35%, CTSH showcases its stability and robust profitability metrics. In contrast, CRWD, valued at $97.4B, struggles with negative net income margins and significant valuation ratios, such as a price-to-earnings ratio of -5055.66.
Analysts rate CTSH with an “A” grade, reflecting its favorable financial health, while CRWD holds a “C” rating, indicating underlying challenges. For growth-oriented investors, CRWD may seem appealing due to its aggressive price movement, but the risks include high valuation and increasing competition. Conversely, those prioritizing profitability and stability might favor CTSH.
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 CrowdStrike Holdings, Inc. to enhance your investment decisions:
