Cognizant Technology Solutions (NASDAQ:CTSH) & TaskUs (NASDAQ:TASK) Head to Head Comparison

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

Volatility & Risk

Cognizant Technology Solutions has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, TaskUs has a beta of 1.88, indicating that its stock price is 88% more volatile than the S&P 500.

Valuation & Earnings

This table compares Cognizant Technology Solutions and TaskUs”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	1.17	$2.23 billion	$4.60	11.37
TaskUs	$1.18 billion	0.47	$102.28 million	$1.14	5.37

Cognizant Technology Solutions has higher revenue and earnings than TaskUs. TaskUs 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.

Institutional & Insider Ownership

92.4% of Cognizant Technology Solutions shares are owned by institutional investors. Comparatively, 44.6% of TaskUs shares are owned by institutional investors. 0.4% of Cognizant Technology Solutions shares are owned by company insiders. Comparatively, 31.9% of TaskUs shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Cognizant Technology Solutions and TaskUs, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cognizant Technology Solutions	0	12	10	0	2.45
TaskUs	2	4	1	1	2.13

Cognizant Technology Solutions currently has a consensus target price of $73.00, indicating a potential upside of 39.53%. TaskUs has a consensus target price of $11.20, indicating a potential upside of 83.01%. Given TaskUs’ higher possible upside, analysts clearly believe TaskUs is more favorable than Cognizant Technology Solutions.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cognizant Technology Solutions	10.41%	17.50%	12.94%
TaskUs	8.70%	24.93%	12.12%

Summary

Cognizant Technology Solutions beats TaskUs on 10 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 TaskUs

TaskUs, Inc. provides digital outsourcing services for companies in Philippines, the United States, India, and internationally. It offers digital customer experience that consists of omni-channel customer care services primarily delivered through non-voice digital channels; and other solutions, including experience and customer care services for new product or market launches, and customer acquisition solutions. The company also provides trust and safety solutions, such as review and disposition of user and advertiser generated visual, text, and audio content, which include removal or labeling of policy violating, and offensive or misleading content, as well as risk management, compliance, identity management, and fraud services; and artificial intelligence (AI) solutions that consist of data labeling, annotation, context relevance, and transcription services for training and tuning machine learning algorithms that enables to develop AI systems. It serves clients in various industry segments comprising e-commerce, FinTech, food delivery and ride sharing, gaming, technology, HealthTech, social media, and streaming media. The company was formerly known as TU TopCo, Inc. and changed its name to TaskUs, Inc. in December 2020. TaskUs, Inc. was founded in 2008 and is headquartered in New Braunfels, Texas.