Analyzing CGI Group (NYSE:GIB) and Nomura Research Institute (OTCMKTS:NRILY)

Nomura Research Institute (OTCMKTS:NRILY) and CGI Group (NYSE:GIB) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.

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	0	7	0	0	2.00

CGI Group has a consensus price target of $83.67, indicating a potential upside of 4.95%. Given CGI Group’s higher possible upside, analysts clearly believe CGI Group is more favorable than Nomura Research Institute.

Valuation and Earnings

This table compares Nomura Research Institute and CGI Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nomura Research Institute	N/A	N/A	N/A	$0.23	171.39
CGI Group	$16.44 billion	1.00	$1.21 billion	$5.83	13.67

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	N/A	N/A	N/A
CGI Group	N/A	N/A	N/A

Insider & Institutional Ownership

66.7% of CGI Group shares are owned by institutional investors. 61.1% of Nomura Research Institute shares are owned by insiders. Comparatively, 9.9% of CGI Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

CGI Group beats Nomura Research Institute on 4 of the 7 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.