EPIQ Systems (NASDAQ: EPIQ) and Globant (NYSE:GLOB) are both technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, analyst recommendations, dividends and risk.

Earnings & Valuation

This table compares EPIQ Systems and Globant’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EPIQ Systems N/A N/A N/A ($0.44) -37.48
Globant $322.86 million 5.05 $35.87 million $0.82 56.66

Globant has higher revenue and earnings than EPIQ Systems. EPIQ Systems is trading at a lower price-to-earnings ratio than Globant, indicating that it is currently the more affordable of the two stocks.

Dividends

EPIQ Systems pays an annual dividend of $0.36 per share and has a dividend yield of 2.2%. Globant does not pay a dividend. EPIQ Systems pays out -81.8% of its earnings in the form of a dividend.

Profitability

This table compares EPIQ Systems and Globant’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EPIQ Systems -3.96% -7.36% -2.71%
Globant 7.60% 13.55% 9.72%

Institutional and Insider Ownership

84.9% of EPIQ Systems shares are held by institutional investors. Comparatively, 64.7% of Globant shares are held by institutional investors. 10.1% of EPIQ Systems shares 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.

Analyst Ratings

This is a breakdown of recent ratings for EPIQ Systems and Globant, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EPIQ Systems 0 0 0 0 N/A
Globant 0 3 4 0 2.57

Globant has a consensus price target of $44.83, suggesting a potential downside of 3.50%. Given Globant’s higher probable upside, analysts plainly believe Globant is more favorable than EPIQ Systems.

Summary

Globant beats EPIQ Systems on 8 of the 12 factors compared between the two stocks.

About EPIQ Systems

Epiq Systems, Inc. (Epiq) is a provider of professional services and integrated technology for the legal profession. The Company operates in two segments: the Technology segment (Technology), which provides eDiscovery managed services and technology solutions consisting of consulting, collections and forensics, processing, search and review, production of documents and document review services to companies and law firms, and the Bankruptcy and Settlement Administration segment (Bankruptcy and Settlement Administration), which provides managed services and technology solutions that address the needs of its customers with respect to litigation, claims and project administration, compliance matters, controlled disbursements, corporate restructuring, bankruptcy and class action proceedings. Its solutions and professional services cater to a range of client legal matters, including litigation, investigations, financial transactions and regulatory compliance, among others.

About Globant

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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