CTSH vs. NOW: Which Stock Is the Better Value Option?

Group 1 - The article compares two stocks in the Computers - IT Services sector: Cognizant (CTSH) and ServiceNow (NOW), focusing on which stock offers better value for investors [1] - Cognizant has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while ServiceNow has a Zacks Rank of 3 (Hold) [3] - Value investors typically analyze traditional metrics such as P/E ratio, P/S ratio, earnings yield, and cash flow per share to identify undervalued stocks [4] Group 2 - Cognizant's forward P/E ratio is 15.39, significantly lower than ServiceNow's forward P/E of 59.66, suggesting better value [5] - Cognizant has a PEG ratio of 1.78, while ServiceNow's PEG ratio is 2.52, indicating that Cognizant may offer more value relative to its expected earnings growth [5] - Cognizant's P/B ratio is 2.59 compared to ServiceNow's P/B of 20.08, further supporting Cognizant's superior valuation metrics and its Value grade of B versus ServiceNow's F [6]