Comparing CLPS Incorporation (NASDAQ:CLPS) and Cognizant Technology Solutions (NASDAQ:CTSH)

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for CLPS Incorporation and Cognizant Technology Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CLPS Incorporation	1	0	0	0	1.00
Cognizant Technology Solutions	0	11	5	0	2.31

Cognizant Technology Solutions has a consensus price target of $86.79, suggesting a potential upside of 28.27%. Given Cognizant Technology Solutions’ stronger consensus rating and higher probable upside, analysts plainly believe Cognizant Technology Solutions is more favorable than CLPS Incorporation.

Insider and Institutional Ownership

0.2% of CLPS Incorporation shares are owned by institutional investors. Comparatively, 92.4% of Cognizant Technology Solutions shares are owned by institutional investors. 58.7% of CLPS Incorporation shares are owned by company insiders. Comparatively, 0.3% of Cognizant Technology Solutions shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

CLPS Incorporation has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500. Comparatively, Cognizant Technology Solutions has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CLPS Incorporation	N/A	N/A	N/A
Cognizant Technology Solutions	11.89%	16.77%	12.34%

Valuation & Earnings

This table compares CLPS Incorporation and Cognizant Technology Solutions”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CLPS Incorporation	$153.82 million	0.18	-$2.33 million	N/A	N/A
Cognizant Technology Solutions	$19.74 billion	1.67	$2.24 billion	$4.92	13.75

Cognizant Technology Solutions has higher revenue and earnings than CLPS Incorporation.

Summary

Cognizant Technology Solutions beats CLPS Incorporation on 11 of the 12 factors compared between the two stocks.

About CLPS Incorporation

CLPS Incorporation provides information technology (IT), consulting, and solutions to institutions operating in banking, insurance, and financial sectors in the People's Republic of China and internationally. It offers IT consulting services in credit card business areas, such as credit card application, account setup, authorization and activation, settlement, collection, promotion, point system, anti-fraud, statement, reporting, and risk management. The company also provides banking services, including business analysis, system design, development, testing, system maintenance, and operation support; and services in loans, deposit, general ledger, wealth management, debit card, anti-money-laundering, statement and reporting, and risk management, as well as architecture consulting services for banking systems, and online and mobile banking. In addition, it offers solutions in the field of wealth management; e-commerce solutions in online platforms, cross-border e-commerce, logistics, and back-end technology, such as big data analysis and intelligent decision-making; and driving, automatic control, and other AI-driven technology solutions for the automotive industry. Further, the company provides IT services to its clients in the banking, wealth management, e-commerce, and automotive industries; and software project development, maintenance, and testing services. Additionally, it offers CLPS Virtual Banking platform, a training platform for IT talents; recruitment and headhunting; and fee-for-service training services, as well as sells product and third-party software. The company was founded in 2005 and is headquartered in Kwun Tong, Hong Kong.

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.