Financial Analysis: CGI Group (GIB) & Its Rivals
CGI Group (NYSE: GIB) is one of 186 publicly-traded companies in the “IT Services & Consulting” industry, but how does it compare to its peers? We will compare CGI Group to related businesses based on the strength of its institutional ownership, analyst recommendations, profitability, valuation, risk, dividends and earnings.
Insider and Institutional Ownership
58.8% of CGI Group shares are owned by institutional investors. Comparatively, 61.1% 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, 16.5% 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 stock will outperform the market over the long term.
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 Competitors||-20.52%||-272.51%||-4.71%|
Risk & Volatility
CGI Group has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, CGI Group’s peers have a beta of 1.14, indicating that their average share price is 14% more volatile than the S&P 500.
Valuation and Earnings
This table compares CGI Group and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|CGI Group||$8.26 billion||$788.50 million||20.72|
|CGI Group Competitors||$2.79 billion||$290.25 million||274.58|
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.
This is a summary of current recommendations for CGI Group and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|CGI Group Competitors||724||4564||7350||166||2.54|
CGI Group currently has a consensus target price of $72.33, suggesting a potential upside of 34.25%. As a group, “IT Services & Consulting” companies have a potential upside of 1.96%. Given CGI Group’s higher possible upside, research analysts plainly believe CGI Group is more favorable than its peers.
CGI Group peers beat CGI Group on 7 of the 13 factors compared.
About CGI Group
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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