Reviewing Globant (GLOB) & GoDaddy (GDDY)
Globant (NYSE: GLOB) and GoDaddy (NYSE:GDDY) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, analyst recommendations, valuation, profitability, risk and institutional ownership.
This is a summary of recent ratings and recommmendations for Globant and GoDaddy, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Globant presently has a consensus target price of $44.86, suggesting a potential upside of 10.49%. GoDaddy has a consensus target price of $47.92, suggesting a potential upside of 8.41%. Given Globant’s higher probable upside, analysts plainly believe Globant is more favorable than GoDaddy.
Earnings and Valuation
This table compares Globant and GoDaddy’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Globant||$357.94 million||3.96||$51.92 million||$0.87||46.67|
|GoDaddy||$2.01 billion||2.45||$238.50 million||$0.14||315.71|
GoDaddy has higher revenue and earnings than Globant. Globant is trading at a lower price-to-earnings ratio than GoDaddy, indicating that it is currently the more affordable of the two stocks.
This table compares Globant and GoDaddy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Globant has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, GoDaddy has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500.
Insider and Institutional Ownership
66.1% of Globant shares are held by institutional investors. Comparatively, 78.0% of GoDaddy shares are held by institutional investors. 22.7% of GoDaddy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
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.
GoDaddy Inc. is a technology provider to small businesses, Web design professionals and individuals. The Company delivers cloud-based products and personalized customer care. It operates a domain marketplace, where its customers can find the digital real estate that matches their idea. It provides Website building, hosting and security tools to help customers construct and protect online presence. It provides applications that enable connecting to customers and managing businesses. The Company provides search, discovery and recommendation tools, as well as a selection of domain name for ventures. It provides productivity tools, such as domain-specific e-mail, online storage, invoicing, bookkeeping and payment solutions to run ventures, as well as marketing products. The Company’s products, including GoCentral enable to build a Website or online store for both desktop and mobile. Its products are powered by a cloud platform and enable its customers to get found online.
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