Contrasting CI&T (NYSE:CINT) & MicroAlgo (NASDAQ:MLGO)

CI&T (NYSE:CINT – Get Rating) and MicroAlgo (NASDAQ:MLGO – Get Rating) are both small-cap construction companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.

Valuation and Earnings

This table compares CI&T and MicroAlgo’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CI&T	$423.72 million	1.67	$24.39 million	$0.18	29.72
MicroAlgo	N/A	N/A	-$810,000.00	N/A	N/A

CI&T has higher revenue and earnings than MicroAlgo.

Analyst Recommendations

This is a summary of current recommendations and price targets for CI&T and MicroAlgo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CI&T	0	1	1	0	2.50
MicroAlgo	0	0	0	0	N/A

CI&T currently has a consensus target price of $11.50, suggesting a potential upside of 114.95%. Given CI&T’s higher possible upside, equities analysts plainly believe CI&T is more favorable than MicroAlgo.

Risk & Volatility

CI&T has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, MicroAlgo has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500.

Insider and Institutional Ownership

9.4% of CI&T shares are held by institutional investors. Comparatively, 67.0% of MicroAlgo shares are held by institutional investors. 22.7% of MicroAlgo shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares CI&T and MicroAlgo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CI&T	5.74%	18.51%	8.21%
MicroAlgo	N/A	-2.37%	0.14%

Summary

CI&T beats MicroAlgo on 7 of the 10 factors compared between the two stocks.

About CI&T

(Get Rating)

CI&T Inc., together with its subsidiaries, provides strategy, design, and software engineering services to enable digital transformation for enterprises worldwide. It develops customizable software through the implementation of software solutions, including machine learning, artificial intelligence, analytics, and cloud and mobility technologies. The company was founded in 1995 and is headquartered in Campinas, Brazil.

About MicroAlgo

(Get Rating)

MicroAlgo Inc. develops and delivers central processing algorithm solutions to customers in internet advertisement, gaming, and intelligent chip industries in the People's Republic of China and internationally. The company operates through two segments, Central Processing Algorithm Services, and Intelligent Chips and Services. It offers services that includes algorithm optimization, accelerating computing power without the need for hardware upgrades, data processing, and data intelligence services. The company also engages in the resale of intelligent chips and accessories; and provision of software development. MicroAlgo Inc. is based in Shenzhen, the People's Republic of China. MicroAlgo Inc. is a subsidiary of WiMi Hologram Cloud Inc.