Nomura Research Institute (OTCMKTS:NRILY – Get Free Report) and CGI Group (NYSE:GIB – Get Free Report) are both large-cap technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, valuation, institutional ownership, risk, earnings, dividends and profitability.
Valuation & Earnings
This table compares Nomura Research Institute and CGI Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nomura Research Institute | $5.41 billion | 3.92 | $100.70 million | $0.23 | 164.57 |
| CGI Group | $11.38 billion | 1.44 | $1.19 billion | $5.83 | 13.56 |
CGI Group has higher revenue and earnings than Nomura Research Institute. CGI Group is trading at a lower price-to-earnings ratio than Nomura Research Institute, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Nomura Research Institute and CGI Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nomura Research Institute | 2.41% | 4.38% | 2.08% |
| CGI Group | 10.54% | 18.83% | 9.83% |
Analyst Ratings
This is a summary of current ratings and recommmendations for Nomura Research Institute and CGI Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nomura Research Institute | 0 | 2 | 0 | 1 | 2.67 |
| CGI Group | 1 | 6 | 0 | 0 | 1.86 |
CGI Group has a consensus price target of $83.67, indicating a potential upside of 5.83%. Given CGI Group’s higher possible upside, analysts plainly believe CGI Group is more favorable than Nomura Research Institute.
Insider and Institutional Ownership
66.7% of CGI Group shares are owned by institutional investors. 61.1% of Nomura Research Institute shares are owned by company insiders. Comparatively, 9.9% of CGI Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Risk & Volatility
Nomura Research Institute has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500. Comparatively, CGI Group has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500.
Dividends
Nomura Research Institute pays an annual dividend of $0.31 per share and has a dividend yield of 0.8%. CGI Group pays an annual dividend of $0.48 per share and has a dividend yield of 0.6%. Nomura Research Institute pays out 134.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CGI Group pays out 8.2% of its earnings in the form of a dividend.
Summary
CGI Group beats Nomura Research Institute on 9 of the 16 factors compared between the two stocks.
About Nomura Research Institute
Nomura Research Institute, Ltd. provides consulting, financial information technology (IT) solution, industrial IT solution, and IT platform services in Japan and internationally. Its Consulting segment offers management, operational, and system consulting services for enterprises and government agencies. This segment also offers research, future projections, and recommendations to society, economics, business, technology, etc. The company's Financial IT Solutions segment provides system consulting, development, and management solutions, as well as shared online and BPO services for the financial institutions, including the securities, insurance, banking, asset management, and other financial sectors. Its Industrial IT Solutions segment offers system consulting, development, and management solutions, as well as shared online services primarily for the distribution, manufacturing, service, and public sectors. The company's IT Platform Services segment engages in the data center operation activities and construction of IT platforms and networks to the Financial IT and Industrial IT Solutions segments, as well as provides IT platform solutions and information security services to external clients. This segment is also involved in the research related to advance IT, etc. The company was founded in 1965 and is headquartered in Tokyo, Japan.
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.
Receive News & Ratings for Nomura Research Institute Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Nomura Research Institute and related companies with MarketBeat.com's FREE daily email newsletter.
