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Cognizant Technology Solutions Corporation (CTSH) vs Eli Lilly and Company (LLY): Which Is the Better Buy in 2026?

As of 2026-09-17, CTSH is undervalued at $62, with a DCF intrinsic value of $135 and a margin of safety of 54%. LLY is undervalued at $1138, with an intrinsic value of $1598 and a margin of safety of 29%. Of the two, CTSH has the wider margin of safety.

CTSH
Cognizant Technology Solutions Corporation
$61.85
VS
LLY
Eli Lilly and Company
$1137.82

Rewards

CTSH
  • ★Cognizant Technology Solutions Corporation has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
  • ★Cognizant Technology Solutions Corporation scores 88/100 on the Economic Moat Score (Wide Moat), with margin stability as the strongest competitive dimension.
  • ★PEG ratio of 0.93 suggests the stock is undervalued relative to its growth rate — paying less than 1x for each unit of earnings growth.
LLY
  • ★Eli Lilly and Company has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • ★Gross margin of 83.4% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Eli Lilly and Company scores 73/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.

Risks

CTSH
  • ⚠FCF yield of 8.0% suggests reasonable valuation assuming continued moderate growth.
  • ⚠6 insider sales with no purchases in the past 3 months — insiders are reducing their exposure.
LLY
  • ⚠FCF yield of 1.1% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
  • ⚠Insiders have sold $10.0M worth of stock in the past 3 months — significant insider liquidation.

Key Valuation Metrics

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CTSH
LLY
Valuation
$2.22B
Free Cash Flow
$11.07B
7.95%
FCF Yield
1.09%
13.27
Trailing P/E
38.17
9.79
Forward P/E
24.05
Quality & Moat
18.05%
ROIC
38.43%
14.92%
ROE
102.29%
33.44%
Gross Margin
83.40%
0.93
PEG Ratio
1.12
Balance Sheet Safety
0.07
Net Debt / Equity
1.36
N/A
Interest Coverage
N/A
0.26
Net Debt / EBITDA
1.10
2.13%
Dividend Yield
0.61%
CTSH: 7Ties: 1LLY: 4
CTSHLLY

Historical Fundamentals

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CTSH

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

LLY

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

$1 Retained Earnings Test

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CTSH
$2.22
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$4.79B
Δ Market Cap
+$10.65B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
LLY
$27.49
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$22.34B
Δ Market Cap
+$614.01B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Discounted Cash Flow (DCF) Analysis

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CTSH
54.1% Margin of Safety
Price is 54.1% below estimated fair value
Current Price: $61.85
Fair Value: $134.69
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
LLY
28.8% Margin of Safety
Price is 28.8% below estimated fair value
Current Price: $1137.82
Fair Value: $1597.97
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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CTSH

What growth rate is the market pricing in at $62?

+0.2%
Market-Implied Owner Earnings Growth
Standard FCF implies +1.9%

The market implies +0.2% Owner Earnings growth, roughly in line with history — reasonably priced.

Standard FCF implies +1.9%, reflecting ongoing growth investment.

LLY

What growth rate is the market pricing in at $1138?

+20.6%
Market-Implied Owner Earnings Growth
Standard FCF implies +29.3%

The market implies +20.6% Owner Earnings growth, below historical trends — potential opportunity.

Standard FCF implies a more demanding +29.3%, reflecting heavy growth investment expected to generate future returns.

Economic Moat Score

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CTSH
88/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

Wide moat with strength across all dimensions. Margin Stability is the standout factor.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.
LLY
73/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

Wide moat driven primarily by roic consistency. Reinvestment Efficiency is the area most vulnerable to competitive pressure.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 5 years of fundamental data.

Forensic Accounting

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CTSH
-2.44
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
LLY
-1.83
Possible Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Ownership Breakdown

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CTSH
Insiders 0.1%Institutions 116.4%
No. of Institutional Holders1,401
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
LLY
Insiders 0.2%Institutions 85.3%Retail & Other 14.5%
No. of Institutional Holders5,890
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

Insider Buying Activity

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CTSH
0
Buys (3M)
1
Buys (12M)
Total value (12M): $209,768
ROHLEDER STEPHEN J
Director
$209,768
@ $52.00 · 2026-06-10
Open market purchases · includes direct & indirect ownership · excludes option exercises
LLY
0
Buys (3M)
0
Buys (12M)
MONTARCE LUCAS E
Chief Financial Officer
$494,627
@ $691.79 · 2025-08-15
ALVAREZ RALPH
Director
$500,473
@ $660.25 · 2025-08-13
VAN NAARDEN JACOB S.
Officer
$647,360
@ $647.36 · 2025-08-13
FYRWALD J. ERIK
Director
$1.01M
@ $642.33 · 2025-08-12
RICKS DAVID A
Chief Executive Officer
$1.05M
@ $644.77 · 2025-08-12
SKOVRONSKY DANIEL
Officer
$634,405
@ $634.40 · 2025-08-12
SULZBERGER GABRIELLE
Director
$75,018
@ $641.18 · 2025-08-12
JACKSON JAMERE
Director
$127,913
@ $639.57 · 2025-08-08
Open market purchases · includes direct & indirect ownership · excludes option exercises

Open market purchases · includes direct & indirect ownership · excludes option exercises.

Insider Selling Activity

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CTSH
6
Sells (3M)
32
Sells (12M)
Total value (12M): $6.31M
KERDMAN ALINA
Officer
$8,362
@ $62.40 · 2026-09-14
KIM JOHN SUNSHIN
Officer
$158,431
@ $63.37 · 2026-09-02
KERDMAN ALINA
Officer
$9,121
@ $63.34 · 2026-08-31
KIM JOHN SUNSHIN
Officer
$142,625
@ $57.05 · 2026-08-03
DALAL JATIN PRAVINCHANDRA
Chief Financial Officer
$669,168
@ $55.76 · 2026-08-03
KERDMAN ALINA
Officer
$5,455
@ $39.82 · 2026-07-01
KERDMAN ALINA
Officer
$6,876
@ $51.70 · 2026-06-15
KERDMAN ALINA
Officer
$8,236
@ $56.41 · 2026-06-01
KERDMAN ALINA
Officer
$7,398
@ $48.04 · 2026-05-18
KERDMAN ALINA
Officer
$11,890
@ $61.29 · 2026-04-02
KERDMAN ALINA
Officer
$7,962
@ $60.78 · 2026-03-16
KERDMAN ALINA
Officer
$9,537
@ $63.16 · 2026-03-02
KERDMAN ALINA
Officer
$10,680
@ $66.75 · 2026-02-17
GUMMADI SURYA KUMARI
Officer
$143,523
@ $83.06 · 2026-02-02
PATSALOS-FOX MICHAEL
Director
$168,460
@ $84.23 · 2026-01-07
PATSALOS-FOX MICHAEL
Director
$245,744
@ $81.91 · 2026-01-05
GUMMADI SURYA KUMARI
Officer
$569,962
@ $81.42 · 2026-01-02
KERDMAN ALINA
Officer
$17,080
@ $84.14 · 2025-12-31
PATSALOS-FOX MICHAEL
Director
$255,514
@ $85.17 · 2025-12-29
PATSALOS-FOX MICHAEL
Director
$596,650
@ $85.24 · 2025-12-24
SINGISETTI RAVI KUMAR
Chief Executive Officer
$250,935
@ $85.06 · 2025-12-19
PATSALOS-FOX MICHAEL
Director
$251,571
@ $83.86 · 2025-12-15
KERDMAN ALINA
Officer
$11,063
@ $84.45 · 2025-12-15
KIM JOHN SUNSHIN
Officer
$418,405
@ $83.68 · 2025-12-12
PATSALOS-FOX MICHAEL
Director
$584,653
@ $83.52 · 2025-12-11
KIM JOHN SUNSHIN
Officer
$200,000
@ $80.00 · 2025-12-04
SINGISETTI RAVI KUMAR
Chief Executive Officer
$250,039
@ $80.01 · 2025-12-04
GUMMADI SURYA KUMARI
Officer
$544,890
@ $77.84 · 2025-12-01
KERDMAN ALINA
Officer
$11,695
@ $77.45 · 2025-12-01
GUMMADI SURYA KUMARI
Officer
$539,578
@ $77.08 · 2025-11-26
KERDMAN ALINA
Officer
$11,350
@ $70.94 · 2025-11-18
KIM JOHN SUNSHIN
Officer
$187,950
@ $75.18 · 2025-10-29
PATSALOS-FOX MICHAEL
Director
$504,823
@ $72.48 · 2025-08-28
KERDMAN ALINA
Officer
$30,897
@ $70.38 · 2025-08-19
GUMMADI SURYA KUMARI
Officer
$399,744
@ $71.38 · 2025-08-04
SINGISETTI RAVI KUMAR
Chief Executive Officer
$383,675
@ $71.05 · 2025-08-04
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
LLY
2
Sells (3M)
40
Sells (12M)
Total value (12M): $3.64B
JONSSON PATRIK
Officer
$7.64M
@ $1175.10 · 2026-08-17
ZAKROWSKI DONALD A
Officer
$2.37M
@ $1185.01 · 2026-08-10
YUFFA ILYA
Officer
$2.88M
@ $1150.77 · 2026-06-10
LILLY ENDOWMENT, INC.
Beneficial Owner of more than 10% of a Class of Security
$15.75M
@ $995.36 · 2026-05-06
LILLY ENDOWMENT, INC.
Beneficial Owner of more than 10% of a Class of Security
$322.38M
@ $1103.48 · 2026-01-07
LILLY ENDOWMENT, INC.
Beneficial Owner of more than 10% of a Class of Security
$1.51M
@ $1085.01 · 2026-01-05
LILLY ENDOWMENT, INC.
Beneficial Owner of more than 10% of a Class of Security
$3.90M
@ $1085.04 · 2025-12-29
LILLY ENDOWMENT, INC.
Beneficial Owner of more than 10% of a Class of Security
$2.85M
@ $1085.17 · 2025-12-24
LILLY ENDOWMENT, INC.
Beneficial Owner of more than 10% of a Class of Security
$260,409
@ $1085.04 · 2025-12-23
LILLY ENDOWMENT, INC.
Beneficial Owner of more than 10% of a Class of Security
$17.34M
@ $1109.30 · 2025-11-25
LILLY ENDOWMENT, INC.
Beneficial Owner of more than 10% of a Class of Security
$161.08M
@ $1095.35 · 2025-11-25
LILLY ENDOWMENT, INC.
Beneficial Owner of more than 10% of a Class of Security
$152.06M
@ $1068.52 · 2025-11-24
LILLY ENDOWMENT, INC.
Beneficial Owner of more than 10% of a Class of Security
$111.50M
@ $1058.66 · 2025-11-21
LILLY ENDOWMENT, INC.
Beneficial Owner of more than 10% of a Class of Security
$39.07M
@ $1051.66 · 2025-11-20
LILLY ENDOWMENT, INC.
Beneficial Owner of more than 10% of a Class of Security
$176.10M
@ $1051.17 · 2025-11-19
LILLY ENDOWMENT, INC.
Beneficial Owner of more than 10% of a Class of Security
$62.31M
@ $1034.78 · 2025-11-18
LILLY ENDOWMENT, INC.
Beneficial Owner of more than 10% of a Class of Security
$10.19M
@ $1030.68 · 2025-11-17
LILLY ENDOWMENT, INC.
Beneficial Owner of more than 10% of a Class of Security
$183.80M
@ $1030.87 · 2025-11-14
LILLY ENDOWMENT, INC.
Beneficial Owner of more than 10% of a Class of Security
$48.02M
@ $1030.26 · 2025-11-13
ZAKROWSKI DONALD A
Officer
$1.01M
@ $1010.50 · 2025-11-13
LILLY ENDOWMENT, INC.
Beneficial Owner of more than 10% of a Class of Security
$308.41M
@ $1011.18 · 2025-11-12
LILLY ENDOWMENT, INC.
Beneficial Owner of more than 10% of a Class of Security
$279.35M
@ $986.64 · 2025-11-11
LILLY ENDOWMENT, INC.
Beneficial Owner of more than 10% of a Class of Security
$16.41M
@ $972.52 · 2025-11-10
LILLY ENDOWMENT, INC.
Beneficial Owner of more than 10% of a Class of Security
$167.09M
@ $933.26 · 2025-11-05
LILLY ENDOWMENT, INC.
Beneficial Owner of more than 10% of a Class of Security
$38.47M
@ $951.56 · 2025-11-05
LILLY ENDOWMENT, INC.
Beneficial Owner of more than 10% of a Class of Security
$479,038
@ $910.72 · 2025-11-04
LILLY ENDOWMENT, INC.
Beneficial Owner of more than 10% of a Class of Security
$266.65M
@ $888.83 · 2025-11-03
LILLY ENDOWMENT, INC.
Beneficial Owner of more than 10% of a Class of Security
$260.17M
@ $863.35 · 2025-10-31
LILLY ENDOWMENT, INC.
Beneficial Owner of more than 10% of a Class of Security
$3.16M
@ $863.24 · 2025-10-10
LILLY ENDOWMENT, INC.
Beneficial Owner of more than 10% of a Class of Security
$9.04M
@ $852.49 · 2025-10-09
LILLY ENDOWMENT, INC.
Beneficial Owner of more than 10% of a Class of Security
$86.23M
@ $850.27 · 2025-10-08
LILLY ENDOWMENT, INC.
Beneficial Owner of more than 10% of a Class of Security
$22.72M
@ $848.01 · 2025-10-07
LILLY ENDOWMENT, INC.
Beneficial Owner of more than 10% of a Class of Security
$137.04M
@ $850.22 · 2025-10-06
LILLY ENDOWMENT, INC.
Beneficial Owner of more than 10% of a Class of Security
$161.22M
@ $837.93 · 2025-10-03
LILLY ENDOWMENT, INC.
Beneficial Owner of more than 10% of a Class of Security
$92.50M
@ $821.55 · 2025-10-02
LILLY ENDOWMENT, INC.
Beneficial Owner of more than 10% of a Class of Security
$107.36M
@ $794.15 · 2025-10-01
LILLY ENDOWMENT, INC.
Beneficial Owner of more than 10% of a Class of Security
$177.29M
@ $821.47 · 2025-10-01
LILLY ENDOWMENT, INC.
Beneficial Owner of more than 10% of a Class of Security
$86.79M
@ $763.39 · 2025-09-30
LILLY ENDOWMENT, INC.
Beneficial Owner of more than 10% of a Class of Security
$18.06M
@ $763.09 · 2025-09-19
LILLY ENDOWMENT, INC.
Beneficial Owner of more than 10% of a Class of Security
$81.53M
@ $764.65 · 2025-09-18
ZAKROWSKI DONALD A
Officer
$734,930
@ $734.93 · 2025-08-28
YUFFA ILYA
Officer
$783,762
@ $627.01 · 2025-08-11
LILLY ENDOWMENT, INC.
Beneficial Owner of more than 10% of a Class of Security
$225.42M
@ $805.07 · 2025-07-24
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

🎭 Mr. Market's Mood

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CTSH
FearGreed
😐Neutral(42/100)

"Market is pricing this stock without strong emotion in either direction"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
LLY
FearGreed
😐Neutral(51/100)

"Market is pricing this stock without strong emotion in either direction"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

⚖️ Buffett Signal

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CTSH
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (42)
LLY
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (51)
View CTSH Full AnalysisView LLY Full Analysis

Frequently Asked Questions: CTSH vs LLY

Is Cognizant Technology Solutions Corporation or Eli Lilly and Company more undervalued in 2026?▼

Based on our discounted cash flow model, CTSH trades at a 54.1% margin of safety (intrinsic value $135 vs. price $62), compared to LLY's 28.8% margin of safety (intrinsic $1598 vs. $1138).

Which stock has a wider economic moat, Cognizant Technology Solutions Corporation or Eli Lilly and Company?▼

CTSH scores 88/100 (Wide moat), while LLY scores 73/100 (Wide moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Which company has better free cash flow, Cognizant Technology Solutions Corporation or Eli Lilly and Company?▼

Cognizant Technology Solutions Corporation (CTSH) generates a 8.0% free cash flow yield, compared to Eli Lilly and Company's 1.1%. A higher FCF yield means the business converts more of its market value into cash that can be returned to shareholders or reinvested.

Which stock has higher return on invested capital, Cognizant Technology Solutions Corporation or Eli Lilly and Company?▼

LLY earns 38.4% ROIC versus CTSH's 18.0%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.

Which dividend is safer, Cognizant Technology Solutions Corporation's or Eli Lilly and Company's?▼

CTSH's dividend earns a safety score of 94/100 (Very Safe), compared to LLY's 64/100 (Safe). CTSH has raised its dividend for 3 consecutive years.

CTSH vs LLY: Which Is the Better Buy in 2026? | SafetyMargin.io