CI&T (NYSE:CINT – Get Free Report) and CGI Group (NYSE:GIB – Get Free Report) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.
Analyst Ratings
This is a breakdown of current ratings and price targets for CI&T and CGI Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CI&T | 1 | 3 | 7 | 0 | 2.55 |
| CGI Group | 0 | 7 | 0 | 0 | 2.00 |
CI&T presently has a consensus price target of $6.08, suggesting a potential upside of 94.80%. CGI Group has a consensus price target of $83.67, suggesting a potential upside of 19.38%. Given CI&T’s stronger consensus rating and higher possible upside, equities research analysts plainly believe CI&T is more favorable than CGI Group.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| CI&T | 6.79% | 11.69% | 6.51% |
| CGI Group | 10.54% | 18.83% | 9.83% |
Risk & Volatility
CI&T has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, CGI Group has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500.
Insider and Institutional Ownership
92.4% of CI&T shares are owned by institutional investors. Comparatively, 66.7% of CGI Group shares are owned by institutional investors. 9.9% of CGI Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
This table compares CI&T and CGI Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CI&T | $489.65 million | 0.86 | $40.62 million | $0.29 | 10.76 |
| CGI Group | $16.44 billion | 0.88 | $1.19 billion | $5.83 | 12.02 |
CGI Group has higher revenue and earnings than CI&T. CI&T is trading at a lower price-to-earnings ratio than CGI Group, indicating that it is currently the more affordable of the two stocks.
Summary
CGI Group beats CI&T on 9 of the 14 factors compared between the two stocks.
About CI&T
CI&T, Inc. provides strategy, design and software engineering services to enable digital transformation. The firm’s solutions and services include Digital Strategy, Customer-Centric Design and Top-of-the-Line Software Engineering. The company was founded by Cesar Nivaldo Gon, Bruno GuiƧardi Neto and Fernando Matt Borges Martins on June 7, 2021 and is headquartered in Sao Paulo, Brazil.
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.
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