Comparing CGI Group (NYSE:GIB) & Computer Services (OTCMKTS:CSVI)

CGI Group (NYSE:GIB) and Computer Services (OTCMKTS:CSVI) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and target prices for CGI Group and Computer Services, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CGI Group	0	1	2	2	3.20
Computer Services	0	0	0	0	0.00

CGI Group currently has a consensus price target of $156.75, suggesting a potential upside of 48.96%. Given CGI Group’s stronger consensus rating and higher probable upside, research analysts plainly believe CGI Group is more favorable than Computer Services.

Institutional and Insider Ownership

66.7% of CGI Group shares are owned by institutional investors. 9.9% of CGI Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares CGI Group and Computer Services’ 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%
Computer Services	N/A	N/A	N/A

Valuation and Earnings

This table compares CGI Group and Computer Services”s gross 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	2.19	$1.24 billion	$5.49	19.17
Computer Services	N/A	N/A	N/A	N/A	N/A

CGI Group has higher revenue and earnings than Computer Services.

Summary

CGI Group beats Computer Services on 10 of the 10 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 Computer Services

Computer Services, Inc., together with its subsidiaries, provides core processing, digital banking, managed services, payments processing, print and electronic distribution, and regulatory compliance solutions to financial institutions and corporate entities in the United States. The company offers processing, maintenance, and support services; software licensing and installation services; and professional services, as well as sells equipment and supplies. It also provides integrated banking solutions, which include mobile and Internet banking; check imaging; cash management; branch and merchant capture; print and mail, and electronic document distribution services; corporate intranets; board portals; Web hosting; e-messaging; teller and platform services; ATM and debit card service and support; payments solutions; cybersecurity risk assessment; network management; and cloud-based managed services. In addition, the company offers compliance software and services for regulatory compliance, homeland security, anti-money laundering, anti-terrorism financing, and fraud prevention. It serves community and regional banks; multi-bank holding companies; and technology, logistics, and insurance organizations, as well as various other business enterprises. The company was incorporated in 1965 and is headquartered in Paducah, Kentucky.