Critical Comparison: Cognizant Technology Solutions (CTSH) & Inpixon (INPX)

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

Profitability

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

Net Margins Return on Equity Return on Assets
Cognizant Technology Solutions 9.67% 20.48% 15.02%
Inpixon -104.33% N/A -62.89%

Analyst Recommendations

This is a summary of current ratings for Cognizant Technology Solutions and Inpixon, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cognizant Technology Solutions 0 3 19 1 2.91
Inpixon 0 1 0 0 2.00

Cognizant Technology Solutions presently has a consensus target price of $85.36, suggesting a potential upside of 6.80%. Inpixon has a consensus target price of $7.50, suggesting a potential upside of 4,587.50%. Given Inpixon’s higher possible upside, analysts clearly believe Inpixon is more favorable than Cognizant Technology Solutions.

Valuation & Earnings

This table compares Cognizant Technology Solutions and Inpixon’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cognizant Technology Solutions $14.81 billion 3.16 $1.50 billion $3.53 22.64
Inpixon $45.13 million 0.07 -$35.01 million N/A N/A

Cognizant Technology Solutions has higher revenue and earnings than Inpixon.

Volatility and Risk

Cognizant Technology Solutions has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, Inpixon has a beta of 3.06, suggesting that its share price is 206% more volatile than the S&P 500.

Insider and Institutional Ownership

88.1% of Cognizant Technology Solutions shares are owned by institutional investors. Comparatively, 2.8% of Inpixon shares are owned by institutional investors. 0.6% of Cognizant Technology Solutions shares are owned by insiders. Comparatively, 0.8% of Inpixon shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Cognizant Technology Solutions pays an annual dividend of $0.80 per share and has a dividend yield of 1.0%. Inpixon does not pay a dividend. Cognizant Technology Solutions pays out 22.7% of its earnings in the form of a dividend.

Summary

Cognizant Technology Solutions beats Inpixon on 11 of the 15 factors compared between the two stocks.

Cognizant Technology Solutions Company Profile

Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services worldwide. The company operates through four segments: Financial Services; Healthcare; Products and Resources; and Communications, Media and Technology. It offers business, process, operations, and technology consulting services; application design and development, and systems integration services; application testing, consulting, and engineering services; and enterprise information management services. The company also develops, licenses, implements, and supports various software products for the healthcare industry, including solutions for health insurance plans, third party benefit administrators, and healthcare providers. In addition, it provides application maintenance services; information technology infrastructure services, such as data center, infrastructure security, network and convergence, end-user computing, and mobility services; and business process services comprising clinical data management, pharmacovigilance, equity research support, commercial operations, and order management services, as well as consulting and platform-based services. The company markets and sells its services directly through its professional staff, senior management, and direct sales personnel. It serves banking and insurance, healthcare and life sciences, manufacturing and logistics, retail and consumer goods, travel and hospitality, energy and utilities, communications and media, and technology industries. The company was founded in 1994 and is headquartered in Teaneck, New Jersey.

Inpixon Company Profile

Inpixon, through its subsidiaries, provides big data analytics and location based products and related services for the cyber-security and Internet of things markets worldwide. The company operates in two segments, Indoor Positioning Analytics and Infrastructure. The Indoor Positioning Analytics segment offers various products and services, which are delivered on premise or in the Cloud, as well as hosted Software-as-a-Service based solutions. Its products are based on a technology that detects and locates accessible cellular, Wi-Fi, and Bluetooth devices, as well as uses a data-analytics engine to deliver actionable insights and intelligent reports for security, marketing, asset management, etc. The Infrastructure segment resells third party hardware, software, and related maintenance/warranty products and services to commercial and government customers. Its products include enterprise computing, storage, virtualization, networking, etc.; and services comprise custom application/software design, architecture and development, staff augmentation, and project management. Further, the company provides IT integration and engineering solutions for network performance, secure wireless infrastructure, software application lifecycle support, and physical cyber security. It serves civilian and defense federal, state, and local government agencies, as well as enterprise customers in various sectors, including retail, manufacturing, life sciences, bio-tech, high-tech, agriculture, financial services, utilities, media and entertainment, telecom, and others. Inpixon has reseller partnership with Genwave Technologies Inc. The company was formerly known as Sysorex Global and changed its name to Inpixon in March 2017. Inpixon is headquartered in Palo Alto, California.

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