Transatlantic Capital (OTCMKTS:TACI) and CGI (NYSE:GIB) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Analyst Recommendations

This is a breakdown of recent recommendations for Transatlantic Capital and CGI, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Transatlantic Capital 0 0 0 0 N/A
CGI 0 2 6 0 2.75

CGI has a consensus target price of $82.00, indicating a potential upside of 6.48%. Given CGI’s higher possible upside, analysts plainly believe CGI is more favorable than Transatlantic Capital.

Earnings and Valuation

This table compares Transatlantic Capital and CGI’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Transatlantic Capital N/A N/A -$40,000.00 N/A N/A
CGI $8.80 billion 2.40 $889.38 million $3.21 23.99

CGI has higher revenue and earnings than Transatlantic Capital.

Volatility & Risk

Transatlantic Capital has a beta of -3.35, indicating that its stock price is 435% less volatile than the S&P 500. Comparatively, CGI has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Transatlantic Capital N/A N/A N/A
CGI 10.29% 18.34% 10.10%

Insider & Institutional Ownership

56.8% of CGI shares are owned by institutional investors. 9.9% of CGI shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

CGI beats Transatlantic Capital on 10 of the 10 factors compared between the two stocks.

About Transatlantic Capital

Transatlantic Capital Inc. does not have significant operations. It intends to identify opportunities in commercial properties in the retail, office, and industrial sectors throughout the United States and Canada. The company was formerly known as ACRO Inc. and changed its name to Transatlantic Capital Inc. in May 2014. Transatlantic Capital Inc. was founded in 2002 and is based in Bingham Farms, Michigan. Transatlantic Capital Inc. is a subsidiary of NFA Securities 3LC.

About CGI

CGI Inc., together with its subsidiaries, provides information technology (IT) and business process services in Canada, Northern Europe, France, the United States, the United Kingdom, Europe, and the Asia Pacific. Its services include the management of IT and business outsourcing, systems integration and consulting, and software solutions selling activities. The company also offers application development, management, testing, portfolio management, and modernization services; business consulting, including agile, business transformation, change management, CIO advisory, cybersecurity, data analytics, digital enterprise, project management, and industry-specific services; and a suite of business process services designed to address the needs of specific industries, as well as IT infrastructure consulting, solutions, and services. It serves clients operating in government, financial services, health, utility, communication, oil and gas, manufacturing, retail and consumer service, transportation, and post and logistics sectors. 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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