GECIS (NYSE: G) and ICF International (NASDAQ:ICFI) are both business services companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.
Volatility and Risk
GECIS has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500. Comparatively, ICF International has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500.
86.9% of GECIS shares are held by institutional investors. Comparatively, 90.5% of ICF International shares are held by institutional investors. 1.4% of GECIS shares are held by insiders. Comparatively, 4.7% of ICF International shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
This table compares GECIS and ICF International’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|GECIS||$2.74 billion||2.11||$263.11 million||$1.49||20.33|
|ICF International||$1.23 billion||1.13||$62.87 million||$3.02||24.35|
GECIS has higher revenue and earnings than ICF International. GECIS is trading at a lower price-to-earnings ratio than ICF International, indicating that it is currently the more affordable of the two stocks.
GECIS pays an annual dividend of $0.30 per share and has a dividend yield of 1.0%. ICF International pays an annual dividend of $0.56 per share and has a dividend yield of 0.8%. GECIS pays out 20.1% of its earnings in the form of a dividend. ICF International pays out 18.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
This table compares GECIS and ICF International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings for GECIS and ICF International, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
GECIS presently has a consensus price target of $34.61, suggesting a potential upside of 14.27%. ICF International has a consensus price target of $71.40, suggesting a potential downside of 2.92%. Given GECIS’s stronger consensus rating and higher probable upside, equities analysts clearly believe GECIS is more favorable than ICF International.
GECIS beats ICF International on 10 of the 16 factors compared between the two stocks.
Genpact Limited provides business process outsourcing and information technology (IT) services North and Latin America, India, rest of Asia, and Europe. Its finance and accounting services include accounts payable, such as document management, invoice processing, approval and resolution management, and travel and expense processing; over-the counter services, including customer master data management, credit and contract management, fulfillment, billing, collections, and dispute management services; record to report services comprising accounting, treasury, tax, product cost accounting, and closing and reporting services; enterprise performance management consisting of budgeting, forecasting, and business performance reporting; and enterprise risk and compliance services, including operational risks and controls. It also provides transformation services; core industry operation services; and sourcing and procurement services, such as direct and indirect strategic sourcing, category management, spend analytics, procurement operations, master data management, and other procurement and supply chain advisory services. In addition, the company's IT services comprise end-user computing, infrastructure management, application production support, and database management services, as well as business intelligence and data, enterprise resource planning, quality assurance, technology integration, and business intelligence reporting services. It serves banking and financial services, capital markets, consumer product goods, healthcare, high-tech, infrastructure, manufacturing and services, insurance, and life sciences industries. Genpact Limited was founded in 1997 and is based in Hamilton, Bermuda.
About ICF International
ICF International Inc. provides management, marketing, technology, and policy consulting and implementation services to government and commercial clients in the United States and internationally. The company researches critical policy, industry, and stakeholder issues, trends, and behaviors; measures and evaluates results and their impact; and provides strategic planning and advisory services to its clients on how to navigate societal, market, business, communication, and technology challenges. It also identifies, defines, and implements policies, plans, programs, and business tools through a range of standard and customized methodologies for its clients; conducts survey research; collects and analyzes various data to understand critical issues and options for its clients; and provides actionable business intelligence, as well as information and data management solutions that allow integrated, and purpose-driven data usage. In addition, the company provides solutions to optimize the customer and citizen experience; and cyber security solutions that support the range of cyber security missions and protect IT infrastructures in the face of relentless threats, as well as designs, develops, and implements technology systems that are principal to its clients' mission or business performance. Further, it informs and engages its clients' constituents, customers, and employees through public relations, branding and marketing, multichannel and strategic communications, and reputation issues management. The company serves energy, environment, and infrastructure; health, education, and social programs; safety and security; and consumer and financial markets. The company was formerly known as ICF Consulting Group Holdings, LLC and changed its name to ICF International, Inc. in 2006. ICF International, Inc. was founded in 1969 and is headquartered in Fairfax, Virginia.
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