Financial Comparison: CGI Group (NYSE:GIB) and CI&T (NYSE:CINT)

CGI Group (NYSE:GIB) and CI&T (NYSE:CINT) are both technology companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.

Volatility and Risk

CGI Group has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500. Comparatively, CI&T has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.

Earnings and Valuation

This table compares CGI Group and CI&T”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CGI Group	$16.44 billion	0.88	$1.19 billion	$5.83	12.02
CI&T	$489.65 million	0.86	$40.62 million	$0.29	10.76

CGI Group has higher revenue and earnings than CI&T. CI&T is trading at a lower price-to-earnings ratio than CGI Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares CGI Group and CI&T’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CGI Group	10.54%	18.83%	9.83%
CI&T	6.79%	11.69%	6.51%

Institutional and Insider Ownership

66.7% of CGI Group shares are owned by institutional investors. Comparatively, 92.4% of CI&T shares are owned by institutional investors. 9.9% of CGI Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for CGI Group and CI&T, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CGI Group	0	7	0	0	2.00
CI&T	1	3	7	0	2.55

CGI Group currently has a consensus target price of $83.67, indicating a potential upside of 19.38%. CI&T has a consensus target price of $6.08, indicating a potential upside of 94.80%. Given CI&T’s stronger consensus rating and higher probable upside, analysts plainly believe CI&T is more favorable than CGI Group.

Summary

CGI Group beats CI&T on 9 of the 14 factors compared between the two stocks.

About CGI Group

CGI Inc., together with its subsidiaries, provides information technology (IT) and business process services. Its services include the business and strategic IT consulting, systems integration, and software solutions. The company also provides application development, modernization and maintenance, holistic enterprise digitization, automation, hybrid and cloud management, and business process services; intellectual property-based solutions; business consulting; managed IT services; and IT infrastructure services. It serves clients operating in government, banking and capital market, health, utility, communication and media, oil and gas, space, manufacturing, insurance, life sciences, retail and consumer service, and transportation and logistics sectors. The company operates in Canada, France, Spain, Portugal, the United States, Germany, Sweden, Norway, the United Kingdom, Australia, Finland, Poland, Baltics, the Netherlands, Denmark, Czech Republic, India, the Philippines, Asia Pacific, and internationally. Western and Southern Europe; Australia; Scandinavia; Finland, Poland, and Baltics; the United States; the United Kingdom; and the Asia Pacific. The company was formerly known as CGI Group Inc. and changed its name to CGI Inc. in January 2019. CGI Inc. was founded in 1976 and is headquartered in Montreal, Canada.

About CI&T

CI&T, Inc. provides strategy, design and software engineering services to enable digital transformation. The firm’s solutions and services include Digital Strategy, Customer-Centric Design and Top-of-the-Line Software Engineering. The company was founded by Cesar Nivaldo Gon, Bruno Guiçardi Neto and Fernando Matt Borges Martins on June 7, 2021 and is headquartered in Sao Paulo, Brazil.