Digi Power X (NASDAQ:DGXX) & CGI Group (NYSE:GIB) Critical Survey

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

Profitability

This table compares CGI Group and Digi Power X’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CGI Group	10.54%	18.83%	9.83%
Digi Power X	-116.79%	-26.75%	-24.92%

Earnings and Valuation

This table compares CGI Group and Digi Power X”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CGI Group	$11.38 billion	1.37	$1.19 billion	$5.83	12.92
Digi Power X	$34.19 million	7.77	-$28.36 million	($0.54)	-4.85

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

Institutional & Insider Ownership

66.7% of CGI Group shares are owned by institutional investors. Comparatively, 1.9% of Digi Power X shares are owned by institutional investors. 9.9% of CGI Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for CGI Group and Digi Power X, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CGI Group	1	6	0	0	1.86
Digi Power X	1	0	2	0	2.33

CGI Group presently has a consensus price target of $83.67, indicating a potential upside of 11.09%. Digi Power X has a consensus price target of $5.00, indicating a potential upside of 90.84%. Given Digi Power X’s stronger consensus rating and higher probable upside, analysts clearly believe Digi Power X is more favorable than CGI Group.

Volatility & Risk

CGI Group has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500. Comparatively, Digi Power X has a beta of 6.24, meaning that its share price is 524% more volatile than the S&P 500.

Summary

CGI Group beats Digi Power X on 9 of the 14 factors compared between the two stocks.

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.

About Digi Power X

Digihost Technology Inc. operates as a blockchain technology company that focuses on digital currency mining in the United States. It mines for cryptocurrency. The company was incorporated in 2017 and is headquartered in Toronto, Canada.