Digi Power X (NASDAQ:DGXX) and CGI Group (NYSE:GIB) Financial Analysis

Digi Power X (NASDAQ:DGXX) and CGI Group (NYSE:GIB) are both technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, analyst recommendations, risk, institutional ownership, profitability and earnings.

Profitability

This table compares Digi Power X and CGI Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Digi Power X	-116.79%	-26.75%	-24.92%
CGI Group	10.54%	18.83%	9.83%

Earnings and Valuation

This table compares Digi Power X and CGI Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Digi Power X	$31.40 million	8.75	-$28.36 million	($0.54)	-5.02
CGI Group	$11.38 billion	1.32	$1.19 billion	$5.83	12.41

CGI Group has higher revenue and earnings than Digi Power X. Digi Power X is trading at a lower price-to-earnings ratio than CGI Group, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Digi Power X has a beta of 6.24, meaning that its stock price is 524% more volatile than the S&P 500. Comparatively, CGI Group has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Digi Power X and CGI Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Digi Power X	1	0	2	0	2.33
CGI Group	1	6	0	0	1.86

Digi Power X currently has a consensus target price of $5.00, indicating a potential upside of 84.50%. CGI Group has a consensus target price of $83.67, indicating a potential upside of 15.66%. Given Digi Power X’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Digi Power X is more favorable than CGI Group.

Institutional and Insider Ownership

1.9% of Digi Power X shares are held by institutional investors. Comparatively, 66.7% of CGI Group shares are held by institutional investors. 9.9% of CGI Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

CGI Group beats Digi Power X on 9 of the 14 factors compared between the two stocks.

About Digi Power X

Digihost Technology Inc. operates as a blockchain technology company that focuses on digital currency mining in the United States. It mines for cryptocurrency. The company was incorporated in 2017 and is headquartered in Toronto, Canada.

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.