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

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

Analyst Recommendations

This is a summary of recent recommendations for Core Scientific and Cognizant Technology Solutions, as provided by MarketBeat.

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

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

Insider and Institutional Ownership

92.4% of Cognizant Technology Solutions shares are held by institutional investors. 1.7% of Core Scientific shares are held by insiders. Comparatively, 0.4% of Cognizant Technology Solutions shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

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

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

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.

Volatility and Risk

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Core Scientific	-325.50%	N/A	-9.64%
Cognizant Technology Solutions	10.26%	17.70%	12.81%

Summary

Cognizant Technology Solutions beats Core Scientific on 8 of the 15 factors compared between the two stocks.

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.

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.