Reviewing CGI (NYSE:GIB) and Aeries Technology (NASDAQ:AERT)

Aeries Technology (NASDAQ:AERT) and CGI (NYSE:GIB) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, dividends, valuation, earnings, analyst recommendations and profitability.

Insider and Institutional Ownership

99.2% of Aeries Technology shares are owned by institutional investors. Comparatively, 66.7% of CGI shares are owned by institutional investors. 43.0% of Aeries Technology shares are owned by company insiders. Comparatively, 9.9% of CGI shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Aeries Technology has a beta of -0.5, suggesting that its stock price is 150% less volatile than the S&P 500. Comparatively, CGI has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Aeries Technology and CGI, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aeries Technology	0	0	0	0	N/A
CGI	0	0	1	0	3.00

CGI has a consensus target price of $165.00, suggesting a potential upside of 61.86%. Given CGI’s higher probable upside, analysts clearly believe CGI is more favorable than Aeries Technology.

Profitability

This table compares Aeries Technology and CGI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aeries Technology	N/A	N/A	-18.17%
CGI	11.38%	20.43%	11.00%

Valuation & Earnings

This table compares Aeries Technology and CGI’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aeries Technology	$67.88 million	0.45	-$1.53 million	N/A	N/A
CGI	$14.47 billion	1.64	$1.21 billion	$5.19	19.64

CGI has higher revenue and earnings than Aeries Technology.

Summary

CGI beats Aeries Technology on 9 of the 11 factors compared between the two stocks.

About Aeries Technology

Aeries Technology, Inc. operates as a professional services and consulting partner in the United States and internationally. The company offers management consultancy services for private equity sponsors and their portfolio companies, including software solutions, product management, IT infrastructure, information and cyber security, ERP and CRM platform management, business process management, and digital transformation services. The company was founded in 2012 and is based in Orem, Utah.

About CGI

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.