Critical Contrast: Elcom International (OTCMKTS:ELCO) and Cognizant Technology Solutions (NASDAQ:CTSH)

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Elcom International and Cognizant Technology Solutions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Elcom International	0	0	0	0	0.00
Cognizant Technology Solutions	0	14	4	0	2.22

Cognizant Technology Solutions has a consensus target price of $81.19, indicating a potential upside of 6.80%. Given Cognizant Technology Solutions’ stronger consensus rating and higher possible upside, analysts clearly believe Cognizant Technology Solutions is more favorable than Elcom International.

Volatility & Risk

Elcom International has a beta of 0.08, meaning that its share price is 92% less volatile than the S&P 500. Comparatively, Cognizant Technology Solutions has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.

Insider & Institutional Ownership

92.4% of Cognizant Technology Solutions shares are held by institutional investors. 13.6% of Elcom International shares are held by insiders. Comparatively, 0.3% 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 company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Elcom International	N/A	N/A	N/A
Cognizant Technology Solutions	11.60%	17.08%	12.44%

Earnings and Valuation

This table compares Elcom International and Cognizant Technology Solutions”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Elcom International	N/A	N/A	N/A	N/A	N/A
Cognizant Technology Solutions	$19.41 billion	1.94	$2.13 billion	$4.52	16.82

Cognizant Technology Solutions has higher revenue and earnings than Elcom International.

Summary

Cognizant Technology Solutions beats Elcom International on 9 of the 10 factors compared between the two stocks.

About Elcom International

Elcom International Inc. provides cloud based e-procurement solutions worldwide. It offers Procure to Pay solutions to publish and manage supplier content, connect to buyers, and analyze spend and procurement processes; eInvoicing solutions to send and receive eInvoices with supplier adoption guaranteed; and sourcing functions to investigate potential suppliers on a local and global basis. The company also provides services for buyers, including catalog processing, development of punchout catalogs, and to integrate Elcom’s PECOS solution into existing purchasing processes; and services for suppliers, such as onboarding of new suppliers to utilize the solution, access to demand generating activities, and to access information and bids that relate to products and services. It offers eProcurement solutions for governments, educational institutions, healthcare organizations, private enterprises, buying groups. Elcom International Inc. was founded in 1992 and is based in Braintree, Massachusetts.

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.