Snowflake (NYSE:SNOW – Get Free Report) and CGI Group (NYSE:GIB – Get Free Report) are both large-cap technology companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.
Insider and Institutional Ownership
65.1% of Snowflake shares are owned by institutional investors. Comparatively, 66.7% of CGI Group shares are owned by institutional investors. 4.8% of Snowflake shares are owned by insiders. Comparatively, 9.9% of CGI Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Snowflake and CGI Group”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Snowflake | $5.43 billion | 22.02 | -$1.33 billion | ($3.18) | -106.66 |
| CGI Group | $11.38 billion | 1.29 | $1.19 billion | $5.83 | 12.19 |
CGI Group has higher revenue and earnings than Snowflake. Snowflake is trading at a lower price-to-earnings ratio than CGI Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Snowflake and CGI Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Snowflake | -20.07% | -46.32% | -10.90% |
| CGI Group | 10.54% | 18.83% | 9.83% |
Analyst Ratings
This is a breakdown of current recommendations for Snowflake and CGI Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Snowflake | 1 | 5 | 34 | 1 | 2.85 |
| CGI Group | 0 | 7 | 0 | 0 | 2.00 |
Snowflake currently has a consensus target price of $414.24, indicating a potential upside of 22.14%. CGI Group has a consensus target price of $83.67, indicating a potential upside of 17.77%. Given Snowflake’s stronger consensus rating and higher probable upside, analysts clearly believe Snowflake is more favorable than CGI Group.
Risk and Volatility
Snowflake has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500. Comparatively, CGI Group has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500.
Summary
CGI Group beats Snowflake on 9 of the 15 factors compared between the two stocks.
About Snowflake
Snowflake Inc. provides a cloud-based data platform for various organizations in the United States and internationally. Its platform offers Data Cloud, which enables customers to consolidate data into a single source of truth to drive meaningful business insights, build data-driven applications, and share data and data products, as well as applies artificial intelligence (AI) for solving business problems. The company was formerly known as Snowflake Computing, Inc. and changed its name to Snowflake Inc. in April 2019. Snowflake Inc. was incorporated in 2012 and is based in Bozeman, Montana.
About CGI Group
CGI Inc., together with its subsidiaries, provides information technology (IT) and business process services. Its services include the business and strategic IT consulting, systems integration, and software solutions. The company also provides application development, modernization and maintenance, holistic enterprise digitization, automation, hybrid and cloud management, and business process services; intellectual property-based solutions; business consulting; managed IT services; and IT infrastructure services. It serves clients operating in government, banking and capital market, health, utility, communication and media, oil and gas, space, manufacturing, insurance, life sciences, retail and consumer service, and transportation and logistics sectors. The company operates in Canada, France, Spain, Portugal, the United States, Germany, Sweden, Norway, the United Kingdom, Australia, Finland, Poland, Baltics, the Netherlands, Denmark, Czech Republic, India, the Philippines, Asia Pacific, and internationally. Western and Southern Europe; Australia; Scandinavia; Finland, Poland, and Baltics; the United States; the United Kingdom; and the Asia Pacific. The company was formerly known as CGI Group Inc. and changed its name to CGI Inc. in January 2019. CGI Inc. was founded in 1976 and is headquartered in Montreal, Canada.
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