Taboola.com (NASDAQ:TBLA – Get Free Report) and Cognizant Technology Solutions (NASDAQ:CTSH – Get Free Report) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.
Insider and Institutional Ownership
42.9% of Taboola.com shares are owned by institutional investors. Comparatively, 92.4% of Cognizant Technology Solutions shares are owned by institutional investors. 24.7% of Taboola.com 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 hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk and Volatility
Taboola.com has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500. Comparatively, Cognizant Technology Solutions has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Taboola.com | 0 | 4 | 5 | 0 | 2.56 |
| Cognizant Technology Solutions | 0 | 12 | 7 | 0 | 2.37 |
Taboola.com presently has a consensus target price of $4.80, indicating a potential upside of 9.56%. Cognizant Technology Solutions has a consensus target price of $85.44, indicating a potential upside of 0.09%. Given Taboola.com’s stronger consensus rating and higher possible upside, research analysts plainly believe Taboola.com is more favorable than Cognizant Technology Solutions.
Profitability
This table compares Taboola.com and Cognizant Technology Solutions’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Taboola.com | 1.34% | 8.12% | 4.92% |
| Cognizant Technology Solutions | 10.20% | 17.00% | 12.61% |
Valuation and Earnings
This table compares Taboola.com and Cognizant Technology Solutions”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Taboola.com | $1.77 billion | 0.71 | -$3.76 million | $0.08 | 54.76 |
| Cognizant Technology Solutions | $19.74 billion | 2.09 | $2.24 billion | $4.31 | 19.81 |
Cognizant Technology Solutions has higher revenue and earnings than Taboola.com. Cognizant Technology Solutions is trading at a lower price-to-earnings ratio than Taboola.com, indicating that it is currently the more affordable of the two stocks.
Summary
Cognizant Technology Solutions beats Taboola.com on 9 of the 14 factors compared between the two stocks.
About Taboola.com
Taboola.com Ltd., together with its subsidiaries, operates an artificial intelligence-based algorithmic engine platform in Israel, the United States, the United Kingdom, Germany, and internationally. It offers Taboola, a platform that partners with websites, devices, and mobile apps to recommend editorial content and advertisements on the open web to users. The company was incorporated in 2006 and is headquartered in New York, New York.
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.
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