Comparing CGI Group (GIB) & Its Peers

CGI Group (NYSE: GIB) is one of 181 public companies in the “IT Services & Consulting” industry, but how does it compare to its peers? We will compare CGI Group to similar businesses based on the strength of its analyst recommendations, earnings, institutional ownership, profitability, risk, valuation and dividends.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for CGI Group and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CGI Group 1 1 4 0 2.50
CGI Group Competitors 732 4641 7367 172 2.54

CGI Group presently has a consensus price target of $72.33, indicating a potential upside of 34.03%. As a group, “IT Services & Consulting” companies have a potential downside of 7.27%. Given CGI Group’s higher probable upside, equities research analysts clearly believe CGI Group is more favorable than its peers.

Profitability

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 9.52% 17.51% 9.69%
CGI Group Competitors -20.67% -275.12% -4.78%

Valuation and Earnings

This table compares CGI Group and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
CGI Group $8.26 billion $788.50 million 20.76
CGI Group Competitors $2.83 billion $296.50 million 330.07

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.

Institutional & Insider Ownership

57.5% of CGI Group shares are owned by institutional investors. Comparatively, 61.0% of shares of all “IT Services & Consulting” companies are owned by institutional investors. 9.9% of CGI Group shares are owned by insiders. Comparatively, 16.7% of shares of all “IT Services & Consulting” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

CGI Group has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, CGI Group’s peers have a beta of 1.14, meaning that their average share price is 14% more volatile than the S&P 500.

Summary

CGI Group beats its peers on 7 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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