Critical Analysis: Mastech Digital (NYSE:MHH) vs. Capgemini (OTCMKTS:CGEMY)

Mastech Digital (NYSE:MHH) and Capgemini (OTCMKTS:CGEMY) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, institutional ownership, valuation, dividends, earnings and profitability.

Risk and Volatility

Mastech Digital has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500. Comparatively, Capgemini has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500.

Profitability

This table compares Mastech Digital and Capgemini’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mastech Digital	-2.10%	4.53%	3.52%
Capgemini	N/A	N/A	N/A

Valuation and Earnings

This table compares Mastech Digital and Capgemini”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mastech Digital	$201.10 million	0.60	-$7.14 million	($0.34)	-30.32
Capgemini	$24.37 billion	1.23	$1.80 billion	N/A	N/A

Capgemini has higher revenue and earnings than Mastech Digital.

Insider and Institutional Ownership

18.4% of Mastech Digital shares are owned by institutional investors. Comparatively, 0.1% of Capgemini shares are owned by institutional investors. 48.6% of Mastech Digital shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Mastech Digital and Capgemini, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mastech Digital	0	0	0	0	N/A
Capgemini	0	0	0	0	N/A

Summary

Capgemini beats Mastech Digital on 5 of the 9 factors compared between the two stocks.

About Mastech Digital

Mastech Digital, Inc., together with its subsidiaries, provides digital transformation IT services to large, medium-sized, and small companies in the United States. The company operates through Data and Analytics Services and IT Staffing Services segments. It offers data management and analytics services, including project-based consulting services in the areas of master data management, enterprise data integration, big data and analytics, and digital transformation by using onsite and offshore resources. In addition, the company provides a range of IT staffing services in the areas of data management and analytics, cloud, mobility, social, automation, business intelligence/data warehousing, web services, enterprise resource planning and customer resource management, and e-business solutions. Further, it offers digital transformation services, including digital learning services; and cloud-based enterprise application across sales, marketing, and customer service organizations. The company provides its services across various industry verticals, such as financial services, retail, healthcare, manufacturing, government, telecommunications, and transportation. The company was formerly known as Mastech Holdings, Inc. and changed its name to Mastech Digital, Inc. in September 2016. Mastech Digital, Inc. was founded in 1986 and is headquartered in Pittsburgh, Pennsylvania.

About Capgemini

Capgemini SE, together with its subsidiaries, engages in the provision of consulting, digital transformation, technology, and engineering services primarily in North America, France, the United Kingdom, Ireland, the rest of Europe, the Asia-Pacific, and Latin America. The company offers strategy and transformation services in strategy, technology, data science, and creative design fields to support companies and organizations in creating new models and new products within the digital economy. It also provides applications and technology services that helps the clients to develop, modernize, extend, and secure their IT and digital environment, as well as designs and develops technological solutions in data strategy and architecture, data engineering, information governance, data science and analytics, artificial intelligence, and data-driven innovation fields. In addition, the company offers cloud infrastructure services for its clients to build an optimal, agile, and secure foundation for business transformations; and business process outsourcing and transactional services, as well as installation and maintenance services for its clients' IT infrastructures in data centers or in the cloud. It serves various industries, including consumer goods and retail; energy and utilities; banking, capital markets, and insurance; manufacturing and life sciences; public sector; telecommunications, media, and technology; and services. Capgemini SE has strategic partnerships with Adobe, AWS, Aveva, Dassault Systèmes, DELL, Duck Creek, Google, Guidewire, IBM/Redhat, Intel, Majesco, Microsoft, Mistral AI, Nvidia, OpenText, Oracle, Pega, PTC, Qualcomm, Salesforce, SAP, Schneider Electric, Siemens, ServiceNow, Tenemos, UiPath, Unity, Verizon, and VMware. The company was incorporated in 1967 and is headquartered in Paris, France.