CGI vs Infosys Which Is More Lucrative?

CGI Group Inc. (CGI) and Infosys Limited (Infosys) are two prominent companies in the information technology sector. While both companies operate in the same industry, they have differing stock performance. CGI has shown steady growth over the years, with a focus on providing IT services and solutions to various sectors. On the other hand, Infosys has faced fluctuations in its stock performance due to market conditions and competition. Understanding the differences between CGI and Infosys stocks can help investors make informed decisions in their investment strategies.

CGI or Infosys?

When comparing CGI and Infosys, 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 Infosys.

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 Infosys has a dividend yield of 2.5%. 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, Infosys reports a 5-year dividend growth of -5.23% year and a payout ratio of 70.72%.

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 22.08 and Infosys's P/E ratio at 29.61. 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 4.15 while Infosys's P/B ratio is 8.87.

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 Infosys's is 0.65%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CGI's ROE at 19.29% and Infosys's ROE at 31.58%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $112.32 for CGI and $23.29 for Infosys. Over the past year, CGI's prices ranged from $96.92 to $118.89, with a yearly change of 22.67%. Infosys's prices fluctuated between $16.04 and $23.63, with a yearly change of 47.32%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.