CGI vs Great Ajax

CGI Inc. and Great Ajax Corp. are two prominent companies in the tech and real estate sectors, respectively. CGI is a global IT and business consulting services firm, while Great Ajax is a real estate investment trust focusing on acquiring and managing mortgage loans secured by single-family residences. Both companies have shown strong performance in the market, with CGI benefiting from the increasing demand for digital transformation services and Great Ajax capitalizing on the booming real estate market. This comparison will analyze the stocks of these two companies to determine their investment potential.

CGI or Great Ajax?

When comparing CGI and Great Ajax, 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 Great Ajax.

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 -%, while Great Ajax has a dividend yield of 10.22%. 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, Great Ajax reports a 5-year dividend growth of -9.03% year and a payout ratio of -12.90%.

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 21.63 and Great Ajax's P/E ratio at -1.11. 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 4.06 while Great Ajax's P/B ratio is 0.50.

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 0.51%, while Great Ajax's is 0.63%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CGI's ROE at 19.29% and Great Ajax's ROE at -40.43%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $114.99 for CGI and $3.15 for Great Ajax. Over the past year, CGI's prices ranged from $93.07 to $118.89, with a yearly change of 27.74%. Great Ajax's prices fluctuated between $2.98 and $6.63, with a yearly change of 122.45%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.