CGI vs IBM Which Performs Better?

CGI Group Inc. and International Business Machines Corporation (IBM) are two prominent companies in the technology sector, each offering unique opportunities for investors. CGI is a leading global IT and business consulting services firm, known for its strong growth trajectory and innovative solutions. On the other hand, IBM, a well-established multinational technology company, has a long history of providing cutting-edge solutions in various sectors. Both companies have shown resilience in the face of market fluctuations, making them attractive choices for investors seeking stability and growth potential.

CGI or IBM?

When comparing CGI and IBM, 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 IBM.

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 0.15%, while IBM has a dividend yield of 2.55%. 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 1.96%. On the other hand, IBM reports a 5-year dividend growth of 0.74% year and a payout ratio of 102.04%.

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 19.93 and IBM's P/E ratio at 40.69. 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 3.52 while IBM's P/B ratio is 8.98.

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 0.45%, while IBM's is 0.03%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CGI's ROE at 18.81% and IBM's ROE at 24.33%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $102.60 for CGI and $245.18 for IBM. Over the past year, CGI's prices ranged from $96.92 to $122.79, with a yearly change of 26.69%. IBM's prices fluctuated between $162.62 and $265.72, with a yearly change of 63.40%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.