Globant (NYSE: GLOB) is one of 197 publicly-traded companies in the “IT Services & Consulting” industry, but how does it compare to its peers? We will compare Globant to related businesses based off the strength of its risk, analyst recommendations, earnings, institutional ownership, valuation, profitability and dividends.

Earnings and Valuation

This table compares Globant and its peers top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Globant $357.94 million $51.92 million 43.49
Globant Competitors $2.11 billion $365.18 million 10.92

Globant’s peers have higher revenue and earnings than Globant. Globant is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently the more expensive than other companies in its industry.

Volatility and Risk

Globant has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, Globant’s peers have a beta of 1.26, suggesting that their average stock price is 26% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Globant and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Globant 0 3 2 0 2.40
Globant Competitors 994 5095 7710 220 2.51

Globant currently has a consensus price target of $43.20, indicating a potential upside of 14.16%. All “IT Services & Consulting” companies have a potential upside of 2.38%. Given Globant’s higher probable upside, analysts plainly believe Globant is more favorable than its peers.

Insider & Institutional Ownership

66.5% of Globant shares are held by institutional investors. Comparatively, 60.9% of shares of all “IT Services & Consulting” companies are held by institutional investors. 16.9% of shares of all “IT Services & Consulting” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Globant and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Globant 8.61% 15.08% 10.96%
Globant Competitors -23.99% -65.39% -4.43%

Summary

Globant peers beat Globant on 7 of the 13 factors compared.

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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