Contrasting CGI Group (GIB) & Its Competitors

CGI Group (NYSE: GIB) is one of 184 public companies in the “IT Services & Consulting” industry, but how does it weigh in compared to its competitors? We will compare CGI Group to similar businesses based on the strength of its valuation, institutional ownership, profitability, dividends, risk, analyst recommendations and earnings.

Earnings & Valuation

This table compares CGI Group and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
CGI Group $8.26 billion $788.50 million 19.66
CGI Group Competitors $2.81 billion $290.97 million 325.80

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

Risk and Volatility

CGI Group has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, CGI Group’s competitors have a beta of 1.11, indicating that their average share price is 11% more volatile than the S&P 500.

Institutional & Insider Ownership

66.5% of CGI Group shares are held by institutional investors. Comparatively, 63.3% of shares of all “IT Services & Consulting” companies are held by institutional investors. 9.9% of CGI Group shares are held by insiders. Comparatively, 16.6% of shares of all “IT Services & Consulting” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for CGI Group and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CGI Group 0 1 4 0 2.80
CGI Group Competitors 781 4710 7485 179 2.54

CGI Group currently has a consensus target price of $72.33, indicating a potential upside of 34.80%. As a group, “IT Services & Consulting” companies have a potential downside of 11.27%. Given CGI Group’s stronger consensus rating and higher possible upside, equities research analysts plainly believe CGI Group is more favorable than its competitors.

Profitability

This table compares CGI Group and its competitors’ 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 -23.69% -278.83% -5.15%

Summary

CGI Group beats its competitors on 9 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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