Head-To-Head Comparison: Cognizant Technology Solutions (NASDAQ:CTSH) and Soluna (NASDAQ:SLNH)

Cognizant Technology Solutions (NASDAQ:CTSH) and Soluna (NASDAQ:SLNH) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, dividends, earnings, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings for Cognizant Technology Solutions and Soluna, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cognizant Technology Solutions	1	13	10	0	2.38
Soluna	1	1	1	0	2.00

Cognizant Technology Solutions presently has a consensus target price of $63.00, suggesting a potential upside of 9.24%. Soluna has a consensus target price of $4.00, suggesting a potential upside of 241.88%. Given Soluna’s higher possible upside, analysts plainly believe Soluna is more favorable than Cognizant Technology Solutions.

Profitability

This table compares Cognizant Technology Solutions and Soluna’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cognizant Technology Solutions	10.26%	17.70%	12.81%
Soluna	-190.87%	-64.80%	-34.02%

Institutional & Insider Ownership

92.4% of Cognizant Technology Solutions shares are held by institutional investors. Comparatively, 23.2% of Soluna shares are held by institutional investors. 0.4% of Cognizant Technology Solutions shares are held by insiders. Comparatively, 10.1% of Soluna shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Cognizant Technology Solutions and Soluna”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cognizant Technology Solutions	$21.11 billion	1.23	$2.23 billion	$4.65	12.40
Soluna	$29.72 million	6.21	-$53.41 million	($1.63)	-0.72

Cognizant Technology Solutions has higher revenue and earnings than Soluna. Soluna is trading at a lower price-to-earnings ratio than Cognizant Technology Solutions, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Cognizant Technology Solutions has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, Soluna has a beta of 5.13, meaning that its stock price is 413% more volatile than the S&P 500.

Summary

Cognizant Technology Solutions beats Soluna on 10 of the 14 factors compared between the two stocks.

About Cognizant Technology Solutions

Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. It operates through four segments: Financial Services, Health Sciences, Products and Resources, and Communications, Media and Technology. The company provides customer experience, robotic process automation, analytics, and AI services in areas, such as digital lending, fraud detection, and next generation payments; the shift towards consumerism, outcome-based contracting, digital health, delivering integrated seamless, omni-channel, and patient-centered experience; and services that drive operational improvements in areas, such as clinical development, pharmacovigilance, and manufacturing, as well as claims processing, enrollment, membership, and billing to healthcare providers and payers, and life sciences companies, including pharmaceutical, biotech, and medical device companies. It offers solution to manufacturers, automakers, retailers and travel and hospitality companies, as well as companies providing logistics, energy and utility services; and digital content, business process improvement, technology modernization, and the creation of unified and compelling user experience services to communications, media and entertainment, education, and information services and technology companies. The company was incorporated in 1988 and is headquartered in Teaneck, New Jersey.

About Soluna

Soluna Holdings, Inc. together with its subsidiaries, engages in the mining of cryptocurrency through data centers. It operates through two segments, Cryptocurrency Mining and Data Center Hosting. The company also operates in the blockchain business. In addition, the company develops and builds modular data centers that use for cryptocurrency mining. Further, it provides data center hosting services, including electrical power and network connectivity to cryptocurrency mining customers. The company was formerly known as Mechanical Technology Inc and as changed to Soluna Holdings, Inc. Soluna Holdings, Inc. was incorporated in 1961 and is headquartered in Albany, New York.