Cognizant Technology Solutions vs CGI Which Performs Better?

Cognizant Technology Solutions and CGI are two leading providers of IT and business consulting services in the global market. Both companies have a strong portfolio of cutting-edge solutions and a solid track record of delivering value to their clients. Cognizant's stock has shown strong growth over the years, while CGI has also been performing well in the market. Investors looking to capitalize on the booming IT industry may find opportunities in both Cognizant and CGI stocks.

Cognizant Technology Solutions or CGI?

When comparing Cognizant Technology Solutions and CGI, 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 Cognizant Technology Solutions and CGI.

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. Cognizant Technology Solutions has a dividend yield of 1.49%, while CGI has a dividend yield of 0.07%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Cognizant Technology Solutions reports a 5-year dividend growth of 3.01% year and a payout ratio of 26.47%. On the other hand, CGI 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 Cognizant Technology Solutions P/E ratio at 17.70 and CGI's P/E ratio at 22.03. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Cognizant Technology Solutions P/B ratio is 2.76 while CGI's P/B ratio is 4.14.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Cognizant Technology Solutions has seen a 5-year revenue growth of 0.38%, while CGI's is 0.48%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cognizant Technology Solutions's ROE at 16.36% and CGI's ROE at 19.29%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $80.33 for Cognizant Technology Solutions and $112.20 for CGI. Over the past year, Cognizant Technology Solutions's prices ranged from $63.79 to $82.41, with a yearly change of 29.19%. CGI's prices fluctuated between $96.92 and $118.89, with a yearly change of 22.67%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.