Analyzing Core Scientific (NASDAQ:CORZ) and Cognizant Technology Solutions (NASDAQ:CTSH)

Cognizant Technology Solutions (NASDAQ:CTSH) and Core Scientific (NASDAQ:CORZ) are both technology companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Profitability

This table compares Cognizant Technology Solutions and Core Scientific’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%
Core Scientific	-325.50%	N/A	-9.64%

Institutional and Insider Ownership

92.4% of Cognizant Technology Solutions shares are held by institutional investors. 0.4% of Cognizant Technology Solutions shares are held by company insiders. Comparatively, 1.7% of Core Scientific shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Cognizant Technology Solutions and Core Scientific”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cognizant Technology Solutions	$21.11 billion	1.22	$2.23 billion	$4.65	12.27
Core Scientific	$319.02 million	16.06	-$288.62 million	($4.42)	-3.61

Cognizant Technology Solutions has higher revenue and earnings than Core Scientific. Core Scientific 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.

Analyst Ratings

This is a summary of current ratings and recommmendations for Cognizant Technology Solutions and Core Scientific, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cognizant Technology Solutions	1	13	10	0	2.38
Core Scientific	1	2	18	2	2.91

Cognizant Technology Solutions presently has a consensus target price of $64.43, suggesting a potential upside of 12.90%. Core Scientific has a consensus target price of $30.86, suggesting a potential upside of 93.62%. Given Core Scientific’s stronger consensus rating and higher possible upside, analysts clearly believe Core Scientific is more favorable than Cognizant Technology Solutions.

Volatility & Risk

Cognizant Technology Solutions has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, Core Scientific has a beta of 5.49, meaning that its share price is 449% more volatile than the S&P 500.

Summary

Cognizant Technology Solutions beats Core Scientific on 8 of the 15 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 Core Scientific

Core Scientific, Inc. provides digital asset mining services in North America. It operates through two segments, Mining and Hosting. The company offers blockchain infrastructure, software solutions, and services; and operates data center mining facilities. It also mines digital assets for its own account; and provides hosting services for other large bitcoin miners, which include deployment, monitoring, trouble shooting, optimization, and maintenance of its customers' digital asset mining equipment. In addition, the company provides electrical power, repair, and other infrastructure services to operate, maintain, and earn digital assets; and sells mining equipment to customers. Core Scientific, Inc. was founded in 2017 and is headquartered in Dover, Delaware.