Reviewing CGI Group (NYSE:GIB) & Obic (OTCMKTS:OBIIF)

CGI Group (NYSE:GIB) and Obic (OTCMKTS:OBIIF) are both large-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, valuation, profitability, dividends and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CGI Group	11.53%	18.86%	10.47%
Obic	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent recommendations and price targets for CGI Group and Obic, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CGI Group	0	1	2	2	3.20
Obic	0	0	0	0	0.00

CGI Group presently has a consensus price target of $156.75, indicating a potential upside of 48.94%. Given CGI Group’s stronger consensus rating and higher possible upside, research analysts clearly believe CGI Group is more favorable than Obic.

Earnings and Valuation

This table compares CGI Group and Obic”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CGI Group	$15.14 billion	1.56	$1.24 billion	$5.49	19.17
Obic	$796.16 million	20.43	$426.50 million	N/A	N/A

CGI Group has higher revenue and earnings than Obic.

Risk & Volatility

CGI Group has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, Obic has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500.

Institutional & Insider Ownership

66.7% of CGI Group 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, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

CGI Group beats Obic on 11 of the 13 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 Obic

OBIC Co.,Ltd., together with its subsidiaries, provides system integration, system support, office automation, and package software services. It offers system integration services, including developing ERP software products to provide integrated administrative systems comprising personnel, payroll, working condition management, marketing, and production systems, as well as related training courses. The company also provides system support services, including system operation support and maintenance, and hardware maintenance. In addition, it offers office automation services, such as sale of package software, and peripheral equipment and supplies, as well as engages in processing of printed materials. The company was incorporated in 1968 and is headquartered in Tokyo, Japan.