Contrasting NIC (EGOV) & CGI (GIB)
NIC (NYSE: GIB) and CGI (NYSE:GIB) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, analyst recommendations, valuation and profitability.
Earnings & Valuation
This table compares NIC and CGI’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|NIC||$336.51 million||3.38||$51.61 million||$0.77||22.21|
|CGI||$8.26 billion||2.22||$788.50 million||$2.78||23.38|
Insider & Institutional Ownership
95.1% of NIC shares are owned by institutional investors. Comparatively, 60.1% of CGI shares are owned by institutional investors. 4.1% of NIC shares are owned by company insiders. Comparatively, 9.9% of CGI shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This table compares NIC and CGI’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and price targets for NIC and CGI, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
NIC presently has a consensus price target of $17.25, indicating a potential upside of 0.88%. CGI has a consensus price target of $75.00, indicating a potential upside of 15.37%. Given CGI’s stronger consensus rating and higher probable upside, analysts plainly believe CGI is more favorable than NIC.
NIC pays an annual dividend of $0.32 per share and has a dividend yield of 1.9%. CGI does not pay a dividend. NIC pays out 41.6% of its earnings in the form of a dividend.
Risk & Volatility
NIC has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500. Comparatively, CGI has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500.
CGI beats NIC on 10 of the 16 factors compared between the two stocks.
NIC Inc., together with its subsidiaries, provides digital government services that enable governments to use technology to provide various services to businesses and citizens in the United States. The company's outsourced portal business enters into long-term contracts with state and local governments to design, build, and operate Internet-based and enterprise-wide portals on their behalf. Its portals consist of Websites and applications that enable businesses and citizens to access government information online and secure transactions, such as applying for a permit, retrieving government records, or filing a government-mandated form or report. The company's portal service offerings include motor vehicle driver history record retrieval; vehicle title, lien, and registration; motor vehicle inspections; temporary vehicle tags; driver's license renewal; hunting and fishing licenses; health professional license services; professional license renewal; business registrations and renewals; secretary of state business searches; Uniform Commercial Code (UCC) searches and filings; limited criminal history searches; court services; vital records; income and property tax payments; and payment processing products and services. Its software & services business provides software development and payment processing services to state and local governments, as well as federal agencies. In addition, the company develops and manages the pre-employment screening program for motor carriers using transaction-based business model. Further, it offers consulting, application development, and portal management services to governments. NIC Inc. was founded in 1991 and is based in Olathe, Kansas.
CGI Group Inc. provides information technology and business process services in Canada and internationally. It offers application development and maintenance, portfolio management, quality assurance and testing, modernization, and migration services; agile, business transformation, change management, CIO advisory, cybersecurity, data analytics, digital enterprise, project management, and industry-specific business consulting services; business-to-business and customer operations support, purchase management, revenue management, and supplier payment services; and data center facilities and management, technical service desk, printing and document management, remote infrastructure, transformation, storage as a service, data vaulting, disaster recovery and archiving as a service, bottomless edge-to-core storage, and file sync and share as a service, as well as infrastructure solutions and consulting services. The company also provides IT outsourcing services; and data analytics, enterprise application integration, enterprise architecture and content management, enterprise resource planning (ERP), and geospatial solutions. In addition, it offers Asset & Resource Management, a solution suite for the utilities industry; Atlas360, a customer relationship management and business process solution; Collections360, a collections and debt management solution; Trade360, a trade solution; CommunityCare360; FlexProperty, an ERP solution for property management; Payments360; mobile workforce and outage management solutions, such as PragmaCAD and PragmaLINE; Ratabase, a solution for insurance companies; [email protected], a meter infrastructure management solution; Unify360; and Renewable Management System. The company serves communication, financial service, health, manufacturing, oil and gas, post and logistic, retail and consumer service, transportation, and utility industries, as well as government. The company was founded in 1976 and is headquartered in Montreal, Canada.
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