Great Ajax vs CGI Which Is Stronger?

Great Ajax and CGI stocks are two distinct investment opportunities that offer potential for strong returns. Great Ajax is a real estate investment trust (REIT) focused on acquiring, investing in, and managing a portfolio of residential mortgage loans. CGI, on the other hand, is a global information technology consulting and business process outsourcing services provider. Both companies have shown solid performance in recent years, but their different business models provide unique opportunities for investors looking to diversify their portfolios.

Great Ajax or CGI?

When comparing Great Ajax 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 Great Ajax 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. Great Ajax has a dividend yield of 9.27%, while CGI has a dividend yield of 0.07%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Great Ajax reports a 5-year dividend growth of -9.03% year and a payout ratio of -10.47%. 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 Great Ajax P/E ratio at -1.17 and CGI's P/E ratio at 22.30. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Great Ajax P/B ratio is 0.56 while CGI's P/B ratio is 4.19.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Great Ajax has seen a 5-year revenue growth of 0.85%, while CGI's is 0.48%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Great Ajax's ROE at -43.98% and CGI's ROE at 19.29%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $2.97 for Great Ajax and $113.22 for CGI. Over the past year, Great Ajax's prices ranged from $2.92 to $6.01, with a yearly change of 105.82%. 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.