Head-To-Head Survey: CGI Group (NYSE:GIB) and PDF Solutions (NASDAQ:PDFS)

CGI Group (NYSE:GIB) and PDF Solutions (NASDAQ:PDFS) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Analyst Ratings

This is a summary of current ratings and target prices for CGI Group and PDF Solutions, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CGI Group	0	3	1	1	2.60
PDF Solutions	1	0	2	1	2.75

CGI Group currently has a consensus price target of $117.00, indicating a potential upside of 34.67%. PDF Solutions has a consensus price target of $34.00, indicating a potential upside of 35.40%. Given PDF Solutions’ stronger consensus rating and higher probable upside, analysts plainly believe PDF Solutions is more favorable than CGI Group.

Valuation and Earnings

This table compares CGI Group and PDF Solutions”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CGI Group	$15.91 billion	1.22	$1.24 billion	$5.26	16.52
PDF Solutions	$206.71 million	4.80	$4.06 million	($0.01)	-2,511.00

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

Risk and Volatility

CGI Group has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, PDF Solutions has a beta of 1.57, meaning that its share price is 57% more volatile than the S&P 500.

Institutional and Insider Ownership

66.7% of CGI Group shares are held by institutional investors. Comparatively, 79.5% of PDF Solutions shares are held by institutional investors. 9.9% of CGI Group shares are held by insiders. Comparatively, 11.1% of PDF Solutions shares are held 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.

Profitability

This table compares CGI Group and PDF Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CGI Group	11.01%	18.53%	10.14%
PDF Solutions	0.44%	4.22%	2.98%

Summary

PDF Solutions beats CGI Group on 8 of the 14 factors compared between the two stocks.

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.

About PDF Solutions

PDF Solutions, Inc. provides proprietary software and physical intellectual property products for integrated circuit designs, electrical measurement hardware tools, proven methodologies, and professional services in the United States, China, Japan, and internationally. The company offers Exensio software products, such as Manufacturing Analytics that store collected data in a common environment with a consistent view for enabling product engineers to identify and analyze production yield, performance, reliability, and other issues; Process Control that provides failure detection and classification capabilities for monitoring, alarming, and controlling manufacturing tool sets; Test Operations that offer data collection and analysis capabilities; and Assembly Operations that provide device manufacturers with the capability to link assembly and packaging data, including fabrication and characterization data over the product life cycle. It also provides Design-For-Inspection (DFI) systems, such as DFI On-Chip Instruments; eProbe Non-Contact E-Beam Tool; and Characterization Vehicle (CV) system, which includes CV Test Chips and pdFasTest Electrical Testers, as well as Exensio characterization software, designed to analyze the measurements collected using the eProbe tool. In addition, the company offers Cimetrix software products that enables equipment manufacturers to provide industry standard interfaces on their products; and software-as-a-service, software related services, and characterization services. It sells its technologies and services through direct sales force, service teams, and strategic alliances to integrated device manufacturers, fabless semiconductor companies, foundries, equipment manufacturers, electronics manufacturing suppliers, original device manufacturers, out-sourced semiconductor assembly and test, and system houses. PDF Solutions, Inc. was founded in 1991 and is headquartered in Santa Clara, California.