CGI vs DXC Technology Which Should You Buy?

CGI and DXC Technology are two leading companies in the technology sector, with a focus on providing IT services and solutions to businesses around the world. Both companies have experienced fluctuations in their stock prices in recent years, as the demand for technology services has evolved. CGI has a strong reputation for its expertise in CGI technology, while DXC Technology offers a wide range of services in digital transformation. Investors often compare the performance of these two stocks to make informed investment decisions.

CGI or DXC Technology?

When comparing CGI and DXC Technology, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between CGI and DXC Technology.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. CGI has a dividend yield of 0.07%, while DXC Technology has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CGI reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, DXC Technology reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with CGI P/E ratio at 22.03 and DXC Technology's P/E ratio at 162.59. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CGI P/B ratio is 4.14 while DXC Technology's P/B ratio is 1.31.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CGI has seen a 5-year revenue growth of 0.48%, while DXC Technology's is -0.17%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CGI's ROE at 19.29% and DXC Technology's ROE at 0.82%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $112.20 for CGI and $21.24 for DXC Technology. Over the past year, CGI's prices ranged from $96.92 to $118.89, with a yearly change of 22.67%. DXC Technology's prices fluctuated between $14.79 and $25.14, with a yearly change of 69.98%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.