Analyzing Cognizant Technology Solutions (NASDAQ:CTSH) & Elcom International (OTCMKTS:ELCO)

Cognizant Technology Solutions (NASDAQ:CTSH) and Elcom International (OTCMKTS:ELCO) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, profitability, institutional ownership, valuation and risk.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cognizant Technology Solutions	$19.41 billion	1.94	$2.13 billion	$4.52	16.82
Elcom International	N/A	N/A	N/A	N/A	N/A

Cognizant Technology Solutions has higher revenue and earnings than Elcom International.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cognizant Technology Solutions	11.60%	17.08%	12.44%
Elcom International	N/A	N/A	N/A

Institutional & Insider Ownership

92.4% of Cognizant Technology Solutions shares are held by institutional investors. 0.3% of Cognizant Technology Solutions shares are held by company insiders. Comparatively, 13.6% of Elcom International shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Cognizant Technology Solutions and Elcom International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cognizant Technology Solutions	0	14	4	0	2.22
Elcom International	0	0	0	0	0.00

Cognizant Technology Solutions currently has a consensus target price of $81.19, indicating a potential upside of 6.80%. Given Cognizant Technology Solutions’ stronger consensus rating and higher probable upside, research analysts clearly believe Cognizant Technology Solutions is more favorable than Elcom International.

Risk and Volatility

Cognizant Technology Solutions has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, Elcom International has a beta of 0.08, indicating that its share price is 92% less volatile than the S&P 500.

Summary

Cognizant Technology Solutions beats Elcom International on 9 of the 10 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 Elcom International

Elcom International Inc. provides cloud based e-procurement solutions worldwide. It offers Procure to Pay solutions to publish and manage supplier content, connect to buyers, and analyze spend and procurement processes; eInvoicing solutions to send and receive eInvoices with supplier adoption guaranteed; and sourcing functions to investigate potential suppliers on a local and global basis. The company also provides services for buyers, including catalog processing, development of punchout catalogs, and to integrate Elcom’s PECOS solution into existing purchasing processes; and services for suppliers, such as onboarding of new suppliers to utilize the solution, access to demand generating activities, and to access information and bids that relate to products and services. It offers eProcurement solutions for governments, educational institutions, healthcare organizations, private enterprises, buying groups. Elcom International Inc. was founded in 1992 and is based in Braintree, Massachusetts.