Financial Review: Axe Compute (NASDAQ:AGPU) & CGI Group (NYSE:GIB)

Axe Compute (NASDAQ:AGPU) and CGI Group (NYSE:GIB) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, valuation, dividends, profitability and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Axe Compute and CGI Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Axe Compute	1	0	0	0	1.00
CGI Group	0	7	0	0	2.00

CGI Group has a consensus target price of $83.67, indicating a potential upside of 23.43%. Given CGI Group’s stronger consensus rating and higher possible upside, analysts plainly believe CGI Group is more favorable than Axe Compute.

Profitability

This table compares Axe Compute and CGI Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Axe Compute	-7,769.61%	-1,606.56%	-355.39%
CGI Group	10.54%	18.83%	9.83%

Risk & Volatility

Axe Compute has a beta of 3.47, suggesting that its stock price is 247% more volatile than the S&P 500. Comparatively, CGI Group has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500.

Valuation & Earnings

This table compares Axe Compute and CGI Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Axe Compute	$3.26 million	42.95	-$233.10 million	($5.75)	-2.10
CGI Group	$16.44 billion	0.85	$1.19 billion	$5.83	11.63

CGI Group has higher revenue and earnings than Axe Compute. Axe Compute is trading at a lower price-to-earnings ratio than CGI Group, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

9.0% of Axe Compute shares are owned by institutional investors. Comparatively, 66.7% of CGI Group shares are owned by institutional investors. 1.2% of Axe Compute shares are owned by company insiders. Comparatively, 9.9% of CGI Group shares are owned 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.

Summary

CGI Group beats Axe Compute on 11 of the 13 factors compared between the two stocks.

About Axe Compute

Predictive Oncology Inc., a knowledge-driven company, focuses on developing personalized cancer therapies using artificial intelligence (AI) primarily in the United States. The company operates in four segments: Helomics, zPREDICTA, Soluble, and Skyline. The Helomics segment offers clinical testing services comprising tumor drug response testing and genomic profiling tests; and contract research services through patient-centric drug discovery using active learning technology for discovery, clinical and translational research, clinical trials, and diagnostic development and validation. The zPREDICTA segment develops organ-specific disease models that provide 3D reconstruction of human tissues representing each disease state and mimicking drug response for testing of anticancer agents. The Soluble segment provides services using High-Throughput Self-Interaction Chromatography, a self-contained, automated system that conducts high-throughput, self-interaction chromatography screens using additives and excipients that are included in protein formulations for soluble and physically stable formulations for biologics. This segment also offers protein stability analysis services; protein solubility kits that allow rapid identification of soluble formulations; and proprietary technologies for bacterial endotoxin detection and removal. The Skyline segment provides STREAMWAY System, a wall-mounted fully automated system, which virtually eliminates staff exposure to blood, irrigation fluid, and other infectious fluids found in the healthcare environment. It also offers research and development services; and media that help cancer cells grow outside the patient’s body and retain their DNA/RNA and proteomic signatures. The company was formerly known as Precision Therapeutics Inc. and changed its name to Predictive Oncology Inc. in June 2019. Predictive Oncology Inc. was incorporated in 2002 and is based in Eagan, Minnesota.

About CGI Group

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.