CGI vs Mphasis Which Is More Reliable?

CGI Group Inc. and Mphasis Limited are two prominent companies in the IT services industry with a focus on providing technology solutions to clients worldwide. CGI, a Canadian multinational, has a strong presence in areas such as cybersecurity, consulting, and systems integration. On the other hand, Mphasis, an Indian IT services company, specializes in application development, infrastructure management, and business process outsourcing. Both companies have shown steady growth in their stocks over the years, making them attractive options for investors looking to capitalize on the growing demand for digital transformation services.

CGI or Mphasis?

When comparing CGI and Mphasis, 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 Mphasis.

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 Mphasis has a dividend yield of 1.73%. 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, Mphasis reports a 5-year dividend growth of 20.11% year and a payout ratio of 59.13%.

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 22.30 and Mphasis's P/E ratio at 37.74. 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 4.19 while Mphasis's P/B ratio is 6.94.

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 Mphasis's is 0.74%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CGI's ROE at 19.29% and Mphasis's ROE at 18.43%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $113.22 for CGI and ₹3105.00 for Mphasis. Over the past year, CGI's prices ranged from $96.92 to $118.89, with a yearly change of 22.67%. Mphasis's prices fluctuated between ₹2187.00 and ₹3201.90, with a yearly change of 46.41%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.