Critical Analysis: CGI (NYSE:GIB) versus Leafbuyer Technologies (OTCMKTS:LBUY)

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

Risk and Volatility

CGI has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, Leafbuyer Technologies has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.

Earnings and Valuation

This table compares CGI and Leafbuyer Technologies’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CGI	$10.60 billion	2.26	$1.21 billion	$5.19	19.87
Leafbuyer Technologies	$5.09 million	0.44	-$580,000.00	N/A	N/A

CGI has higher revenue and earnings than Leafbuyer Technologies.

Insider & Institutional Ownership

66.7% of CGI shares are held by institutional investors. Comparatively, 11.0% of Leafbuyer Technologies shares are held by institutional investors. 9.9% of CGI shares are held by company insiders. Comparatively, 24.4% of Leafbuyer Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for CGI and Leafbuyer Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CGI	0	0	1	0	3.00
Leafbuyer Technologies	0	0	0	0	N/A

CGI presently has a consensus price target of $165.00, indicating a potential upside of 60.04%. Given CGI’s higher probable upside, research analysts clearly believe CGI is more favorable than Leafbuyer Technologies.

Profitability

This table compares CGI and Leafbuyer Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CGI	11.38%	20.43%	11.00%
Leafbuyer Technologies	-18.38%	N/A	-59.79%

Summary

CGI beats Leafbuyer Technologies on 9 of the 10 factors compared between the two stocks.

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.

About Leafbuyer Technologies

Leafbuyer Technologies, Inc., through its subsidiary, LB Media Group, LLC, provides online resources for cannabis deals and specials in the United States. The company was founded in 2012 and is headquartered in Greenwood Village, Colorado.