EPAM vs CTSH

For growth investors, Cognizant Technology Solutions Corporation (CTSH) is the stronger pick with 7.

0% revenue growth year-over-year, versus 0. 8% for EPAM Systems, Inc. (EPAM). Cognizant Technology Solutions Corporation (CTSH) offers the better valuation at 11. 3x trailing P/E (9. 0x forward), making it the more compelling value choice. Analysts rate EPAM Systems, Inc. (EPAM) a "Buy" — based on 37 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Cognizant Technology Solutions Corporation (CTSH) is the cheapest at 11.

3x versus EPAM Systems, Inc. at 13. 6x. On forward P/E, EPAM Systems, Inc. is actually cheaper at 8. 4x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: EPAM Systems, Inc. wins at 0. 72x versus Cognizant Technology Solutions Corporation's 0. 75x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Cognizant Technology Solutions Corporation (CTSH) delivered a total return of -24.

0%, compared to -76. 7% for EPAM Systems, Inc. (EPAM). Over 10 years, the gap is even starker: EPAM returned +50. 3% versus CTSH's -0. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Cognizant Technology Solutions Corporation (CTSH) is the lower-risk stock at 0.

75β versus EPAM Systems, Inc. 's 1. 21β — meaning EPAM is approximately 61% more volatile than CTSH relative to the S&P 500. On balance sheet safety, EPAM Systems, Inc. (EPAM) carries a lower debt/equity ratio of 4% versus 10% for Cognizant Technology Solutions Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Cognizant Technology Solutions Corporation (CTSH) is pulling ahead at 7.

0% versus 0. 8% for EPAM Systems, Inc. (EPAM). On earnings-per-share growth, the picture is similar: EPAM Systems, Inc. grew EPS 11. 0% year-over-year, compared to 0. 9% for Cognizant Technology Solutions Corporation. Over a 3-year CAGR, EPAM leads at 8. 0% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Cognizant Technology Solutions Corporation (CTSH) is the more profitable company, earning 10.

6% net margin versus 9. 6% for EPAM Systems, Inc. — meaning it keeps 10. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CTSH leads at 16. 7% versus 11. 5% for EPAM. At the gross margin level — before operating expenses — CTSH leads at 33. 7%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, EPAM Systems, Inc. (EPAM) is the more undervalued stock at a PEG of 0. 72x versus Cognizant Technology Solutions Corporation's 0. 75x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, EPAM Systems, Inc. (EPAM) trades at 8. 4x forward P/E versus 9. 0x for Cognizant Technology Solutions Corporation — 0. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for EPAM: 84. 1% to $197. 00.

In this comparison, CTSH (2.

5% yield) pays a dividend. EPAM does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Cognizant Technology Solutions Corporation (CTSH) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

75), 2. 5% yield). Both have compounded well over 10 years (CTSH: -0. 5%, EPAM: +50. 3%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

CTSH pays a dividend while EPAM does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.