Contrasting Capgemini (OTCMKTS:CGEMY) and FTI Consulting (OTCMKTS:FCN)

Capgemini (OTCMKTS:CGEMY) and FTI Consulting (NYSE:FCN) are both business services companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Dividends

Capgemini pays an annual dividend of $0.27 per share and has a dividend yield of 1.1%. FTI Consulting does not pay a dividend.

Risk & Volatility

Capgemini has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500. Comparatively, FTI Consulting has a beta of 0.26, indicating that its share price is 74% less volatile than the S&P 500.

Earnings and Valuation

This table compares Capgemini and FTI Consulting’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Capgemini $15.59 billion 1.38 $862.13 million N/A N/A
FTI Consulting $2.03 billion 1.72 $150.61 million $4.00 22.99

Capgemini has higher revenue and earnings than FTI Consulting.

Profitability

This table compares Capgemini and FTI Consulting’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Capgemini N/A N/A N/A
FTI Consulting 8.37% 13.13% 7.26%

Institutional and Insider Ownership

0.2% of Capgemini shares are held by institutional investors. Comparatively, 96.8% of FTI Consulting shares are held by institutional investors. 2.2% of FTI Consulting 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.

Analyst Ratings

This is a breakdown of current ratings and target prices for Capgemini and FTI Consulting, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Capgemini 0 1 0 0 2.00
FTI Consulting 0 0 1 0 3.00

FTI Consulting has a consensus target price of $84.70, indicating a potential downside of 7.87%. Given FTI Consulting’s stronger consensus rating and higher probable upside, analysts clearly believe FTI Consulting is more favorable than Capgemini.

Summary

FTI Consulting beats Capgemini on 9 of the 13 factors compared between the two stocks.

About Capgemini

Capgemini SE provides consulting, technology, and digital transformation services. It addresses clients' opportunities in the world of cloud, digital, and platforms, as well as enables organizations to realize business ambitions through an array of services from strategy to operations. The company's Consulting Services segment offers strategy and transformation consulting services primarily in digital transformation that enhance the performance of organizations based on intimate client relationships, and the knowledge of client industries and processes. Its Technology & Engineering Services segment provides assistance and support to internal IT teams of client companies. The company's Application Services segment designs, develops, implements, and maintains IT applications, including system integration and application maintenance services. Its Other Managed Services segment integrates, manages, and/or develops client's IT infrastructure systems, as well as provides transaction, on-demand, and/or business process outsourcing services. The company also provides financial services, as well as manages the business activities of clients in financial sector. Capgemini SE serves various industries, including aerospace and defense, automotive, consumer products and retail, electronics and high tech, government and public sector, healthcare and life sciences, insurance, media and entertainment, natural resources, telecom, transportation and distribution, and utilities. The company has operations in North America, France, the United Kingdom, Ireland, rest of Europe, Asia-Pacific, and Latin America. Capgemini SE was founded in 1967 and is based in Paris, France.

About FTI Consulting

FTI Consulting, Inc. provides business advisory services to manage change, mitigate risk, and resolve disputes worldwide. The company's Corporate Finance & Restructuring segment provides turnaround and restructuring, business transformation, interim management, valuation and financial advisory, transaction, dispute advisory, and tax services, as well as mergers and acquisitions (M&A), and M&A integration services. Its Forensic and Litigation Consulting segment offers anti-corruption investigations and compliance, and data and analytics, as well as compliance, monitoring, and receivership services; cybersecurity, forensic accounting and advisory, and global risk and investigations practice; and construction solutions, dispute advisory, intellectual property, trial, business insurance claims, anti-money laundering, and health solutions. The company's Economic Consulting segment provides financial, economic, and econometric consulting; business and expert valuation, and expert testimony services; intellectual property and international arbitration services; economic and statistical analyses services; services related to public policy and regulated industries, and healthcare economics and policy; and network and economic impact analysis, and securities litigation and risk management services. Its Technology segment offers e-discovery management, managed document review, collections and digital forensics, information governance and compliance, investigations, and contract intelligence services, as well as Relativity and Radiance Visual Analytics software. The company's Strategic Communications segment provides advice services relating to public affairs and government relations, M&A crisis communications and special situations, corporate reputation, people and change, digital and creative communications, capital markets communications, and strategy consulting and research. FTI Consulting, Inc. was founded in 1982 and is headquartered in Washington, District of Columbia.

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