Financial Survey: Cartesian (CRTN) versus CGI (GIB)

Cartesian (OTCMKTS:CRTN) and CGI (NYSE:GIB) are both business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.

Volatility and Risk

Cartesian has a beta of -0.53, indicating that its share price is 153% less volatile than the S&P 500. Comparatively, CGI has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500.

Valuation & Earnings

This table compares Cartesian 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
Cartesian $50.77 million 0.07 -$6.24 million N/A N/A
CGI $8.80 billion 2.00 $873.62 million $3.21 19.50

CGI has higher revenue and earnings than Cartesian.

Insider and Institutional Ownership

58.1% of CGI shares are owned by institutional investors. 9.5% of Cartesian shares are owned by insiders. Comparatively, 9.9% of CGI shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Cartesian -15.30% -386.24% -33.67%
CGI 9.92% 18.05% 10.00%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Cartesian and CGI, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cartesian 0 0 0 0 N/A
CGI 0 1 4 0 2.80

CGI has a consensus price target of $81.50, suggesting a potential upside of 30.23%. Given CGI’s higher possible upside, analysts clearly believe CGI is more favorable than Cartesian.

Summary

CGI beats Cartesian on 11 of the 11 factors compared between the two stocks.

Cartesian Company Profile

Cartesian, Inc., a management consulting company, provides consulting services and managed solutions to communications, digital media, and technology sectors in the United States, the United Kingdom, and Western Europe. It provides technical consultancy services in the areas of requirements definition and capture; data analysis; selecting and implementing mediation; provisioning; customer and inter-operator billing; integration systems to provide resilient automated processes; migrating end-customer products; customers and networks; planning, managing, and executing end-to-end systems; and software testing. The company also offers strategy and business case development services, including business case development, data and content strategies, marketing spending optimization, service and brand diversification, enterprise and small business strategies, technology commercialization, and operational strategies; and marketing services. In addition, it offers program management services; business and operations process redesign and reengineering services; and Ascertain, a revenue management and data integrity toolset that provides evaluation of processes, metrics, and control points. Further, the company provides investment advisory services, such as evaluation of management teams and business plans, and identification of strengths and weakness of the company, as well as analyses of the company's financial models, systems, products, and operational and business processes. It serves wireless and wireline service providers, and cable multiple systems operators, as well as technology companies, media and entertainment companies, and financial services firms that invest in the communications industry. The company was formerly known as The Management Network Group, Inc. and changed its name to Cartesian, Inc. in June 2014. Cartesian, Inc. was founded in 1990 and is based in Overland Park, Kansas.

CGI Company Profile

CGI Group Inc. provides information technology (IT) and business process services in Canada and internationally. Its services include the management of IT and business outsourcing, systems integration and consulting, and software solutions selling activities. The company offers application development, integration, and maintenance services; technology infrastructure management services; and business process services, such as collections and payroll management. Its targeted industries include government, financial services, health, utilities, communications, oil and gas, manufacturing, retail and consumer services, transportation, and post and logistics. CGI Group Inc. was founded in 1976 and is headquartered in Montreal, Canada.

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