Head-To-Head Survey: CGI Group (NYSE:GIB) versus CACI International (NYSE:CACI)

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

Analyst Ratings

This is a summary of recent ratings and price targets for CGI Group and CACI International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CGI Group	0	1	2	2	3.20
CACI International	1	1	12	1	2.87

CGI Group currently has a consensus target price of $156.75, suggesting a potential upside of 47.61%. CACI International has a consensus target price of $520.31, suggesting a potential upside of 6.40%. Given CGI Group’s stronger consensus rating and higher possible upside, research analysts clearly believe CGI Group is more favorable than CACI International.

Insider & Institutional Ownership

66.7% of CGI Group shares are held by institutional investors. Comparatively, 86.4% of CACI International shares are held by institutional investors. 9.9% of CGI Group shares are held by company insiders. Comparatively, 1.4% of CACI International shares are held 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.

Risk & Volatility

CGI Group has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, CACI International has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500.

Earnings and Valuation

This table compares CGI Group and CACI International”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CGI Group	$10.79 billion	2.21	$1.24 billion	$5.49	19.34
CACI International	$7.66 billion	1.40	$419.92 million	$21.19	23.08

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

Profitability

This table compares CGI Group and CACI International’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%
CACI International	5.70%	15.23%	7.15%

Summary

CGI Group beats CACI International on 11 of the 15 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 CACI International

CACI International Inc, through its subsidiaries, engages in the provision of expertise and technology to enterprise and mission customers in support of national security in the intelligence, defense, and federal civilian sectors. The company operates through two segments, Domestic Operations and International Operations. The Domestic Operations segment offers digital solutions by modernizing enterprise and agency-unique applications, enterprise infrastructure, and business processes; C4ISR solutions, including command, control, communications, and computer (C4), as well as intelligence, surveillance, and reconnaissance (ISR) technology and networks; and cyber solutions for cybersecurity, cyberspace, electronic warfare, and signals intelligence operations. This segment also provides space solutions, comprising intelligence fusion, data analytic, and decision support, as well as logistics solutions; engineering services, such as platform integration, modernization and sustainment, system engineering, naval architecture, training and simulation, and logistics engineering; design, implement, protect, and manage secure enterprise IT solutions for federal agencies; and mission support solutions, that include analytic services, as well as scenario-based instruction across the spectrum of intelligence processing, collection, and products. The International Operations segment provides a range of IT services, proprietary data, and software products to the commercial and government customers in the United Kingdom, continental Europe, and internationally. The company was founded in 1962 and is headquartered in Reston, Virginia.