Analyzing EPAM Systems (EPAM) and Globant (GLOB)
EPAM Systems (NYSE: EPAM) and Globant (NYSE:GLOB) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.
Institutional & Insider Ownership
87.9% of EPAM Systems shares are held by institutional investors. Comparatively, 66.5% of Globant shares are held by institutional investors. 6.2% of EPAM Systems shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation and Earnings
This table compares EPAM Systems and Globant’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|EPAM Systems||$1.29 billion||3.38||$183.54 million||$2.07||40.11|
|Globant||$357.94 million||3.79||$51.92 million||$0.87||44.63|
EPAM Systems has higher revenue and earnings than Globant. EPAM Systems is trading at a lower price-to-earnings ratio than Globant, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and target prices for EPAM Systems and Globant, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
EPAM Systems currently has a consensus target price of $91.27, indicating a potential upside of 9.94%. Globant has a consensus target price of $43.20, indicating a potential upside of 11.25%. Given Globant’s higher possible upside, analysts plainly believe Globant is more favorable than EPAM Systems.
Risk & Volatility
EPAM Systems has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, Globant has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.
This table compares EPAM Systems and Globant’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
EPAM Systems beats Globant on 11 of the 14 factors compared between the two stocks.
EPAM Systems Company Profile
EPAM Systems, Inc. is a g provider of software product development and digital platform engineering services to clients located primarily in North America, Europe, Asia and Australia. The Company’s service offerings cover the full software product development lifecycle from digital strategy and customer experience design to enterprise application platforms implementation and program management services and from complex software development services to maintenance, support, custom application development, application testing, and infrastructure management. Its service offerings include Software Product Development Services, Custom Application Development Services, Application Testing Services, Enterprise Application Platforms, Application Maintenance and Support, and Infrastructure Management Services. It offers its solutions and services to industries, such as financial services, media and entertainment, travel and consumer, software and hi-tech, and life sciences and healthcare.
Globant Company Profile
Globant S.A. is a digitally native technology services company. The Company’s principal operating subsidiary is based in Buenos Aires, Argentina. During the year ended December 31, 2015, 83.7% of its revenues were generated by clients in North America, 11.0% in Latin America and Asia, and 5.3% in Europe. It builds digital journeys, which consists of different software products, including mobile apps, Web apps, sensors and other software and hardware appliances that work orchestrated by a backend that uses big data and fast data to create a understanding of each consumer and how to act upon each scenario. The Company delivers digital journeys with a comprehensive approach that includes Stay Relevant, which helps its customers stay fit for the future of their industries; Discover, which think and conceive specific digital journeys for each customer; Build, which creates each digital journey leveraging the work of its Studios, its services over platforms and its agile pods methodologies.
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