Reviewing CGI (GIB) & Pharma Bio Serv (PBSV)
CGI (NYSE:GIB) and Pharma Bio Serv (OTCMKTS:PBSV) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, profitability, risk, valuation, earnings and analyst recommendations.
Pharma Bio Serv pays an annual dividend of $0.08 per share and has a dividend yield of 8.1%. CGI does not pay a dividend. Pharma Bio Serv pays out -160.0% of its earnings in the form of a dividend.
This table compares CGI and Pharma Bio Serv’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Pharma Bio Serv||23.60%||8.63%||6.95%|
This is a summary of recent ratings for CGI and Pharma Bio Serv, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Pharma Bio Serv||0||0||0||0||N/A|
CGI currently has a consensus price target of $82.00, indicating a potential upside of 12.76%. Given CGI’s higher possible upside, analysts clearly believe CGI is more favorable than Pharma Bio Serv.
Institutional and Insider Ownership
56.8% of CGI shares are held by institutional investors. 9.9% of CGI shares are held by company insiders. Comparatively, 51.2% of Pharma Bio Serv shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares CGI and Pharma Bio Serv’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CGI||$8.80 billion||2.26||$889.38 million||$3.21||22.65|
|Pharma Bio Serv||$17.80 million||1.30||$1.27 million||($0.05)||-19.80|
CGI has higher revenue and earnings than Pharma Bio Serv. Pharma Bio Serv is trading at a lower price-to-earnings ratio than CGI, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
CGI has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500. Comparatively, Pharma Bio Serv has a beta of 0.25, suggesting that its stock price is 75% less volatile than the S&P 500.
CGI beats Pharma Bio Serv on 11 of the 15 factors compared between the two stocks.
CGI Company Profile
CGI Inc., together with its subsidiaries, provides information technology (IT) and business process services in Canada, Northern Europe, France, the United States, the United Kingdom, Europe, and the Asia Pacific. Its services include the management of IT and business outsourcing, systems integration and consulting, and software solutions selling activities. The company also offers application development, management, testing, portfolio management, and modernization services; business consulting, including agile, business transformation, change management, CIO advisory, cybersecurity, data analytics, digital enterprise, project management, and industry-specific services; and a suite of business process services designed to address the needs of specific industries, as well as IT infrastructure consulting, solutions, and services. It serves clients operating in government, financial services, health, utility, communication, oil and gas, manufacturing, retail and consumer service, transportation, and post and logistics sectors. 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.
Pharma Bio Serv Company Profile
Pharma-Bio Serv, Inc. operates as a compliance and technology transfer services consulting firm the United States, Europe, and Brazil markets. It provides compliance consulting services to the pharmaceutical, chemical, biotechnology, medical device, cosmetic, food industries, and allied products in Puerto Rico, the United States, Europe, and Brazil. The company's technical consulting services comprise regulatory compliance, validation, technology transfer, engineering, project management, and process support. Pharma-Bio Serv, Inc. was founded in 1993 and is headquartered in Dorado, Puerto Rico.
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