CGI Group (GIB) and Exponent (EXPO) Head to Head Survey

CGI Group (NYSE: GIB) and Exponent (NASDAQ:EXPO) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.

Dividends

Exponent pays an annual dividend of $0.52 per share and has a dividend yield of 1.0%. CGI Group does not pay a dividend. Exponent pays out 48.6% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
CGI Group 9.31% 17.67% 9.76%
Exponent 12.52% 19.47% 13.37%

Analyst Ratings

This is a summary of recent ratings and recommmendations for CGI Group and Exponent, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CGI Group 0 0 3 0 3.00
Exponent 0 0 2 0 3.00

CGI Group currently has a consensus target price of $73.67, indicating a potential upside of 18.07%. Exponent has a consensus target price of $23.88, indicating a potential downside of 52.35%. Given CGI Group’s higher probable upside, equities research analysts clearly believe CGI Group is more favorable than Exponent.

Institutional & Insider Ownership

59.3% of CGI Group shares are owned by institutional investors. Comparatively, 43.6% of Exponent shares are owned by institutional investors. 9.9% of CGI Group shares are owned by insiders. Comparatively, 2.7% of Exponent shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

CGI Group has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Exponent has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500.

Valuation and Earnings

This table compares CGI Group and Exponent’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 2.18 $788.50 million $2.78 22.44
Exponent $347.80 million 7.49 $41.30 million $1.07 46.82

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

Summary

CGI Group beats Exponent on 9 of the 15 factors compared between the two stocks.

CGI Group Company Profile

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.

Exponent Company Profile

Exponent, Inc., together with its subsidiaries, operates as a science and engineering consulting company worldwide. Its services include analysis of product development, product recall, regulatory compliance, and the discovery of potential problems related to products, people, property, and impending litigation. The company operates in two segments, Engineering and Other Scientific, and Environmental and Health. The Engineering and Other Scientific segment provides services in the areas of biomechanics, biomedical engineering, buildings and structures, civil engineering, construction consulting, electrical engineering and computer science, human factors, industrial structures, materials and corrosion engineering, mechanical engineering, polymer science and materials chemistry, statistical and data sciences, thermal sciences, and vehicle analysis. The Environmental and Health segment offers services in the areas of chemical regulation and food safety, ecological and biological sciences, environmental and earth sciences, and health sciences. The company offers approximately 90 different technical disciplines to solve complicated issues facing industry and government. It serves clients in chemical, construction, consumer products, energy, food, beverage and nutrition, government, life sciences, insurance, manufacturing, technology, industrial equipment, transportation, and other sectors of the economy. The company was formerly known as The Failure Group, Inc. and changed its name to Exponent, Inc. in 1998. Exponent, Inc. was founded in 1967 and is headquartered in Menlo Park, California.

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