Critical Survey: CGI (GIB) and Wilhelmina International (WHLM)

CGI (NYSE:GIB) and Wilhelmina International (NASDAQ:WHLM) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Profitability

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

Net Margins Return on Equity Return on Assets
CGI 9.33% 18.06% 9.94%
Wilhelmina International 1.05% 0.36% 0.22%



Institutional and Insider Ownership

58.6% of CGI shares are owned by institutional investors. Comparatively, 5.9% of Wilhelmina International shares are owned by institutional investors. 9.9% of CGI shares are owned by company insiders. Comparatively, 64.8% of Wilhelmina International shares are owned 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.

Volatility and Risk

CGI has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500. Comparatively, Wilhelmina International has a beta of 0.09, meaning that its share price is 91% less volatile than the S&P 500.

Earnings and Valuation

This table compares CGI and Wilhelmina International’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CGI $8.26 billion 2.00 $788.50 million $2.78 21.07
Wilhelmina International $73.20 million 0.49 $160,000.00 N/A N/A

CGI has higher revenue and earnings than Wilhelmina International.

Analyst Recommendations

This is a summary of current ratings for CGI and Wilhelmina International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CGI 0 2 2 0 2.50
Wilhelmina International 0 0 0 0 N/A

CGI presently has a consensus target price of $75.00, suggesting a potential upside of 28.03%. Given CGI’s higher possible upside, analysts clearly believe CGI is more favorable than Wilhelmina International.

Summary

CGI beats Wilhelmina International on 10 of the 12 factors compared between the two stocks.

About CGI

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.

About Wilhelmina International

Wilhelmina International, Inc. provides fashion model and talent management services. The company engages in the representation and management of models, entertainers, artists, athletes, and other talent to various clients. It offers fashion modeling and social media influencer services to clients, such as advertising agencies, branded consumer goods companies, fashion designers, magazine publications, retailers, department stores, product catalogs, and Internet sites. The company also represents artists in the hair, makeup, photography, and stylist arenas to various companies in the media, advertising, retail, pharmaceutical, and music industries. In addition, it is involved in the licensing of the Wilhelmina name to third-parties, such as fashion model agencies; and television syndication royalties and production series contracts; and celebrity management activities. The company has operations in Los Angeles, Miami, London, Chicago, the United States, and internationally. Wilhelmina International, Inc. was founded in 1967 and is headquartered in Dallas, Texas.

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