CGI Group (NYSE: GIB) is one of 183 publicly-traded companies in the “IT Services & Consulting” industry, but how does it contrast to its peers? We will compare CGI Group to similar companies based on the strength of its earnings, valuation, institutional ownership, risk, analyst recommendations, profitability and dividends.

Profitability

This table compares CGI Group and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CGI Group 9.52% 17.51% 9.69%
CGI Group Competitors -20.68% -276.02% -4.78%

Insider and Institutional Ownership

57.5% of CGI Group shares are owned by institutional investors. Comparatively, 63.3% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 9.9% of CGI Group shares are owned by company insiders. Comparatively, 16.4% of shares of all “IT Services & Consulting” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

CGI Group has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, CGI Group’s peers have a beta of 1.11, suggesting that their average stock price is 11% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for CGI Group and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CGI Group 1 2 4 0 2.43
CGI Group Competitors 710 4561 7288 167 2.54

CGI Group presently has a consensus price target of $72.33, suggesting a potential upside of 36.76%. As a group, “IT Services & Consulting” companies have a potential upside of 2.60%. Given CGI Group’s higher possible upside, equities analysts plainly believe CGI Group is more favorable than its peers.

Valuation and Earnings

This table compares CGI Group and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
CGI Group $8.26 billion $788.50 million 20.34
CGI Group Competitors $2.81 billion $293.37 million 312.93

CGI Group has higher revenue and earnings than its peers. CGI Group is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

CGI Group peers beat CGI Group on 7 of the 13 factors compared.

CGI Group Company Profile

CGI Group Inc. (CGI), directly or through its subsidiaries, manages information technology (IT) services, as well as business process services (BPS). The Company’s services include the management of IT and business functions (outsourcing), systems integration and consulting, as well as the sale of software solutions. The Company’s segments are United States of America (U.S.); Nordics; Canada; France (including Luxembourg and Morocco) (France); United Kingdom (U.K.); Eastern, Central and Southern Europe (primarily the Netherlands and Germany) (ECS); and Asia Pacific (including Australia, India and the Philippines) (Asia Pacific). Its services in an end-to-end engagement include application development, integration and maintenance; technology infrastructure management; and business process services, such as collections and payroll management. Its Internet Protocol (IP)-based business solutions include CGI Advantage, Momentum, Credit Services Solutions, CGI Atlas360 and CGI Trade360.

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