Contrasting CI&T (NYSE:CINT) and Thoughtworks (NASDAQ:TWKS)

Thoughtworks (NASDAQ:TWKS – Get Rating) and CI&T (NYSE:CINT – Get Rating) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, dividends, valuation and risk.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Thoughtworks and CI&T, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Thoughtworks	0	4	3	0	2.43
CI&T	0	1	1	0	2.50

Thoughtworks currently has a consensus target price of $9.94, suggesting a potential upside of 30.41%. CI&T has a consensus target price of $9.13, suggesting a potential upside of 155.60%. Given CI&T’s stronger consensus rating and higher possible upside, analysts clearly believe CI&T is more favorable than Thoughtworks.

Insider & Institutional Ownership

19.7% of Thoughtworks shares are owned by institutional investors. Comparatively, 9.4% of CI&T shares are owned by institutional investors. 3.9% of Thoughtworks shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Thoughtworks has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, CI&T has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500.

Valuation and Earnings

This table compares Thoughtworks and CI&T’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Thoughtworks	$1.30 billion	1.86	-$105.39 million	($0.18)	-42.33
CI&T	$423.72 million	1.13	$24.39 million	$0.18	19.83

CI&T has lower revenue, but higher earnings than Thoughtworks. Thoughtworks is trading at a lower price-to-earnings ratio than CI&T, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Thoughtworks and CI&T’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Thoughtworks	-4.16%	-2.29%	-1.20%
CI&T	5.74%	18.51%	8.21%

Summary

CI&T beats Thoughtworks on 8 of the 14 factors compared between the two stocks.

About Thoughtworks

(Get Rating)

Thoughtworks Holding, Inc. provides technology consultancy services in North America, the Asia Pacific, Europe, and Latin America. The company's consultancy services integrate strategy, design, and software engineering to enable enterprises and technology disruptors to thrive as modern digital businesses. It offers enterprise modernization, platforms, and cloud services, including modernization strategy and execution, digital platform strategy and engineering organization transformation, cloud modernization, cloud-native application support and evolution, and platform assessment and remediation; and customer experience, product, and design services comprising idea to market, customer experience strategy, product management transformation, and product design and delivery. The company also provides data and artificial intelligence services, such as data strategy, intelligent products, data platforms and data mesh, continuous delivery for machine learning, and data governance; and digital transformation and operations services, which include delivery transformation, digital fluency, organization transformation, value-driven portfolio management, technology strategy, executive advisory, and digital foundations training. It serves its clients in various industry verticals, including technology and business services; energy, public, and health services; retail and consumer; financial services and insurance; and automotive, travel, and transportation. The company was founded in 1993 and is headquartered in Chicago, Illinois.

About CI&T

(Get Rating)

CI&T Inc., together with its subsidiaries, provides strategy, design, and software engineering services to enable digital transformation for enterprises worldwide. It develops customizable software through the implementation of software solutions, including machine learning, artificial intelligence, analytics, and cloud and mobility technologies. The company was founded in 1995 and is headquartered in Campinas, Brazil.