Wipro vs CGI Which Is More Attractive?

Wipro Limited and CGI Inc. are two leading companies in the IT services industry, each with a strong presence in the global market. Investors often compare the stocks of these two companies to analyze their financial performance, growth prospects, and overall value. Wipro, based in India, has a long-standing history and solid reputation in the industry, while CGI, based in Canada, has experienced significant growth in recent years. Both companies offer a range of services and solutions to clients worldwide, making them key players in the IT services sector.

Wipro or CGI?

When comparing Wipro 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 Wipro 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. Wipro has a dividend yield of 0.33%, while CGI has a dividend yield of 0.07%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Wipro reports a 5-year dividend growth of -5.59% year and a payout ratio of 4.44%. 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 Wipro P/E ratio at 13.68 and CGI's P/E ratio at 22.37. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Wipro P/B ratio is 1.96 while CGI's P/B ratio is 4.20.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Wipro has seen a 5-year revenue growth of 0.74%, while CGI's is 0.48%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Wipro's ROE at 15.47% and CGI's ROE at 19.29%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $3.58 for Wipro and $114.00 for CGI. Over the past year, Wipro's prices ranged from $2.48 to $3.75, with a yearly change of 51.21%. 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.