Reviewing CGI Group (GIB) & Huron Consulting Group (HURN)

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

Analyst Recommendations

This is a summary of current ratings and price targets for CGI Group and Huron Consulting Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CGI Group 0 0 4 0 3.00
Huron Consulting Group 0 2 2 0 2.50

CGI Group presently has a consensus target price of $73.33, indicating a potential upside of 27.09%. Huron Consulting Group has a consensus target price of $48.00, indicating a potential upside of 23.39%. Given CGI Group’s stronger consensus rating and higher probable upside, analysts plainly believe CGI Group is more favorable than Huron Consulting Group.

Valuation & Earnings

This table compares CGI Group and Huron Consulting Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CGI Group $8.26 billion 2.01 $788.50 million $2.78 20.76
Huron Consulting Group $807.74 million 1.08 -$170.11 million $2.15 18.09

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

Insider and Institutional Ownership

59.9% of CGI Group shares are owned by institutional investors. Comparatively, 93.1% of Huron Consulting Group shares are owned by institutional investors. 9.9% of CGI Group shares are owned by company insiders. Comparatively, 2.7% of Huron Consulting Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
CGI Group 9.50% 17.54% 9.69%
Huron Consulting Group -21.06% 8.43% 4.14%

Risk & Volatility

CGI Group has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, Huron Consulting Group has a beta of 0.15, indicating that its stock price is 85% less volatile than the S&P 500.

Summary

CGI Group beats Huron Consulting Group on 13 of the 14 factors compared between the two stocks.

About CGI Group

CGI Group Inc. provides information technology and business process services in Canada and internationally. It offers application development and maintenance, portfolio management, quality assurance and testing, modernization, and migration services; agile, business transformation, change management, CIO advisory, cybersecurity, data analytics, digital enterprise, project management, and industry-specific business consulting services; business-to-business and customer operations support, purchase management, revenue management, and supplier payment services; and data center facilities and management, technical service desk, printing and document management, remote infrastructure, transformation, storage as a service, data vaulting, disaster recovery and archiving as a service, bottomless edge-to-core storage, and file sync and share as a service, as well as infrastructure solutions and consulting services. The company also provides IT outsourcing services; and data analytics, enterprise application integration, enterprise architecture and content management, enterprise resource planning (ERP), and geospatial solutions. In addition, it offers Asset & Resource Management, a solution suite for the utilities industry; Atlas360, a customer relationship management and business process solution; Collections360, a collections and debt management solution; Trade360, a trade solution; CommunityCare360; FlexProperty, an ERP solution for property management; Payments360; mobile workforce and outage management solutions, such as PragmaCAD and PragmaLINE; Ratabase, a solution for insurance companies; [email protected], a meter infrastructure management solution; Unify360; and Renewable Management System. The company serves communication, financial service, health, manufacturing, oil and gas, post and logistic, retail and consumer service, transportation, and utility industries, as well as government. The company was founded in 1976 and is headquartered in Montreal, Canada.

About Huron Consulting Group

Huron Consulting Group Inc., a professional services firm, provides advisory, technology, and analytic solutions in the United States and internationally. Its Healthcare segment provides advisory services in the areas of strategy, care transformation, financial and operational performance, technology and analytics, and leadership development to national and regional hospitals, integrated health systems, academic medical centers, community hospitals, and medical groups. The company's Education segment offers management consulting and technology solutions related to business and technology strategy, financial management, operational and organizational effectiveness, research administration, and regulatory compliance for higher education institutions and academic medical centers. Its Business Advisory segment provides enterprise performance management, enterprise resource planning, business intelligence and analytics, customer relationship management, and data management services; and capital advisory, transaction advisory, operational improvement, restructuring and turnaround, valuation, and dispute advisory services. This segment also provides strategic solutions in the areas of R&D and product strategy commercial segmentation, corporate and financial strategy, compliance and operations, reimbursement and access strategy, commercial contracting strategy, fair market value analysis, lifecycle management, litigation and investigations, government pricing and transparency reporting, auditing and monitoring, and business process improvement. The company serves healthcare, education, pharmaceutical and medical device, financial services, energy and utilities, retail, aerospace, automotive, technology, telecommunications, consumer products, governmental, metals and mining, engineering and construction, hospitality and gaming, logistics, and manufacturing industries. Huron Consulting Group Inc. was founded in 2002 and is headquartered in Chicago, Illinois.

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