GIB.A vs. OTEX, DSG, CLS, CSU, SHOP, CTS, SFTC, ALYA, KXS, and NVEI
Should you be buying CGI stock or one of its competitors? The main competitors of CGI include Open Text (OTEX), The Descartes Systems Group (DSG), Celestica (CLS), Constellation Software (CSU), Shopify (SHOP), Converge Technology Solutions (CTS), Softchoice (SFTC), Alithya Group (ALYA), Kinaxis (KXS), and Nuvei (NVEI). These companies are all part of the "computer and technology" sector.
CGI (TSE:GIB.A) and Open Text (TSE:OTEX) are both large-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, community ranking, valuation, profitability, dividends, institutional ownership, analyst recommendations and media sentiment.
CGI presently has a consensus target price of C$166.27, suggesting a potential upside of 15.68%. Open Text has a consensus target price of C$51.50, suggesting a potential upside of 4.40%. Given CGI's higher probable upside, analysts plainly believe CGI is more favorable than Open Text.
68.8% of CGI shares are held by institutional investors. Comparatively, 77.9% of Open Text shares are held by institutional investors. 0.8% of CGI shares are held by insiders. Comparatively, 2.2% of Open Text shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
CGI has a net margin of 11.34% compared to Open Text's net margin of 2.24%. CGI's return on equity of 19.88% beat Open Text's return on equity.
In the previous week, Open Text had 1 more articles in the media than CGI. MarketBeat recorded 4 mentions for Open Text and 3 mentions for CGI. CGI's average media sentiment score of 1.05 beat Open Text's score of 0.00 indicating that CGI is being referred to more favorably in the media.
CGI received 262 more outperform votes than Open Text when rated by MarketBeat users. Likewise, 73.82% of users gave CGI an outperform vote while only 71.62% of users gave Open Text an outperform vote.
CGI has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, Open Text has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.
CGI has higher revenue and earnings than Open Text. CGI is trading at a lower price-to-earnings ratio than Open Text, indicating that it is currently the more affordable of the two stocks.
Summary
CGI beats Open Text on 11 of the 18 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding GIB.A and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of TSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
GIB.A vs. The Competition
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