Contrasting Presidio (PSDO) and CGI Group (GIB)

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

Insider and Institutional Ownership

66.5% of CGI Group shares are held by institutional investors. Comparatively, 97.5% of Presidio shares are held by institutional investors. 9.9% of CGI Group shares are held by company insiders. Comparatively, 2.7% of Presidio shares are held 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.

Earnings & Valuation

This table compares CGI Group and Presidio’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CGI Group $8.26 billion 1.64 $788.50 million $2.72 19.52
Presidio $2.82 billion 0.61 $4.40 million $0.14 134.29

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

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CGI Group 0 1 4 0 2.80
Presidio 0 1 7 0 2.88

CGI Group presently has a consensus price target of $72.33, indicating a potential upside of 36.22%. Presidio has a consensus price target of $18.25, indicating a potential downside of 2.93%. Given CGI Group’s higher probable upside, analysts clearly believe CGI Group is more favorable than Presidio.

Profitability

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

Net Margins Return on Equity Return on Assets
CGI Group 9.52% 17.51% 9.69%
Presidio N/A N/A N/A

Summary

CGI Group beats Presidio on 9 of the 13 factors compared between the two stocks.

About CGI Group

CGI Group Inc. (CGI), directly or through its subsidiaries, manages information technology (IT) services, as well as business process services (BPS). The Company’s services include the management of IT and business functions (outsourcing), systems integration and consulting, as well as the sale of software solutions. The Company’s segments are United States of America (U.S.); Nordics; Canada; France (including Luxembourg and Morocco) (France); United Kingdom (U.K.); Eastern, Central and Southern Europe (primarily the Netherlands and Germany) (ECS); and Asia Pacific (including Australia, India and the Philippines) (Asia Pacific). Its services in an end-to-end engagement include application development, integration and maintenance; technology infrastructure management; and business process services, such as collections and payroll management. Its Internet Protocol (IP)-based business solutions include CGI Advantage, Momentum, Credit Services Solutions, CGI Atlas360 and CGI Trade360.

About Presidio

Presidio, Inc. is a United States-based company, which is an information technology (IT) solutions provider. The Company’s services include strategy and consulting, solutions design and deployment, managed services, asset maintenance and support, financing services, global services and carrier connectivity. It offers various solutions under categories, including Digital Infrastructure, including Networking, Collaboration, Enterprise Mobility, Internet of Things and Data Analytics; Cloud, including Data Center Modernization, Hybrid/Multi Cloud and Cloud Concierge; and Security, including Next Generation Risk Management, Infrastructure Security, Managed Security and Physical Security. The Company focuses on technologies, including Collaboration, Virtualization, Data Center, Mobility, Hybrid Cloud Computing, IT Convergence and Cyber Security. It focuses on industries, such as healthcare, education, media and entertainment, energy and utilities, and legal and professional services.

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