VeriSign (VRSN) vs. Globant (GLOB) Head-To-Head Comparison

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

Profitability

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

Net Margins Return on Equity Return on Assets
VeriSign 39.92% -36.99% 18.95%
Globant 8.61% 15.08% 10.96%

Analyst Recommendations

This is a summary of recent recommendations and price targets for VeriSign and Globant, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
VeriSign 0 3 0 0 2.00
Globant 0 3 2 0 2.40

VeriSign currently has a consensus target price of $89.67, suggesting a potential downside of 13.21%. Globant has a consensus target price of $43.20, suggesting a potential upside of 14.16%. Given Globant’s stronger consensus rating and higher possible upside, analysts plainly believe Globant is more favorable than VeriSign.

Volatility and Risk

VeriSign has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500. Comparatively, Globant has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.

Insider & Institutional Ownership

66.5% of Globant shares are held by institutional investors. 0.9% of VeriSign 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 VeriSign and Globant’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
VeriSign $1.15 billion 8.98 $747.69 million $3.67 28.15
Globant $357.94 million 3.69 $51.92 million $0.87 43.49

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

Summary

VeriSign beats Globant on 8 of the 14 factors compared between the two stocks.

VeriSign Company Profile

VeriSign, Inc. is a provider of domain name registry services and Internet security. The Company operates through Registry Services and Security Services segment. Registry Services ensure the security, stability and resiliency of Internet infrastructure and services, including the .com and .net domains, and operation of the root-zone maintainer functions for the core of the Internet’s Domain Name System (DNS). Security Services provides infrastructure assurance services consisting of Distributed Denial of Services (DDoS) Protection Services and Managed DNS Services. DDoS Protection Services supports online business continuity by providing monitoring and mitigation services against DDoS attacks. Managed DNS Services is a hosting service that delivers DNS resolution for the availability of Web-based systems.

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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