Contrasting Nukkleus (NASDAQ:NUKK) & CGI (NYSE:GIB)

Nukkleus (NASDAQ:NUKK) and CGI (NYSE:GIB) are both business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.

Profitability

This table compares Nukkleus and CGI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nukkleus	N/A	N/A	-4.47%
CGI	11.38%	20.43%	11.00%

Valuation and Earnings

This table compares Nukkleus and CGI’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nukkleus	N/A	N/A	-$970,000.00	N/A	N/A
CGI	$14.47 billion	1.59	$1.21 billion	$5.19	19.22

CGI has higher revenue and earnings than Nukkleus.

Analyst Ratings

This is a breakdown of current ratings and price targets for Nukkleus and CGI, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nukkleus	0	0	0	0	N/A
CGI	0	0	1	0	3.00

CGI has a consensus target price of $165.00, indicating a potential upside of 65.45%. Given CGI’s higher probable upside, analysts clearly believe CGI is more favorable than Nukkleus.

Institutional and Insider Ownership

12.5% of Nukkleus shares are owned by institutional investors. Comparatively, 66.7% of CGI shares are owned by institutional investors. 69.8% of Nukkleus shares are owned by insiders. Comparatively, 9.9% of CGI shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

Nukkleus has a beta of -0.26, suggesting that its stock price is 126% less volatile than the S&P 500. Comparatively, CGI has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.

Summary

CGI beats Nukkleus on 9 of the 10 factors compared between the two stocks.

About Nukkleus

Nukkleus Inc., a financial technology company, focuses on providing software and technology solutions for retail foreign exchange trading industry worldwide. The company primarily offers software, technology, customer sales and marketing, and risk management technology hardware and software solutions. It also offers payment services from one fiat currency to another or to digital assets. The company was founded in 2013 and is headquartered in Jersey City, New Jersey. Nukkleus Inc. operates as a subsidiary of Global Elite Holdings Ltd.

About CGI

CGI Inc., together with its subsidiaries, provides information technology (IT) and business process services. Its services include the business and strategic IT consulting, systems integration, and software solutions. The company also provides application development, modernization and maintenance, holistic enterprise digitization, automation, hybrid and cloud management, and business process services; intellectual property-based solutions; business consulting; managed IT services; and IT infrastructure services. It serves clients operating in government, banking and capital market, health, utility, communication and media, oil and gas, space, manufacturing, insurance, life sciences, retail and consumer service, and transportation and logistics sectors. The company operates in Canada, France, Spain, Portugal, the United States, Germany, Sweden, Norway, the United Kingdom, Australia, Finland, Poland, Baltics, the Netherlands, Denmark, Czech Republic, India, the Philippines, Asia Pacific, and internationally. Western and Southern Europe; Australia; Scandinavia; Finland, Poland, and Baltics; the United States; the United Kingdom; and the Asia Pacific. 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.