Globant (NYSE: GLOB) and Sphere 3D (NASDAQ:ANY) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.

Insider & Institutional Ownership

68.4% of Globant shares are owned by institutional investors. Comparatively, 11.8% of Sphere 3D shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Globant has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, Sphere 3D has a beta of 2.33, indicating that its share price is 133% more volatile than the S&P 500.

Profitability

This table compares Globant and Sphere 3D’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Globant 7.55% 13.03% 9.38%
Sphere 3D -32.12% -60.52% -9.90%

Valuation and Earnings

This table compares Globant and Sphere 3D’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Globant $413.44 million 3.77 $30.53 million $0.88 50.41
Sphere 3D $81.52 million 0.08 -$26.18 million ($1.32) -0.37

Globant has higher revenue and earnings than Sphere 3D. Sphere 3D is trading at a lower price-to-earnings ratio than Globant, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Globant and Sphere 3D, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Globant 0 3 5 0 2.63
Sphere 3D 0 0 0 0 N/A

Globant presently has a consensus target price of $48.14, suggesting a potential upside of 8.53%. Given Globant’s higher possible upside, research analysts clearly believe Globant is more favorable than Sphere 3D.

Summary

Globant beats Sphere 3D on 11 of the 12 factors compared between the two stocks.

Globant Company Profile

Globant S.A. develops and provides software solutions to clients in North America, the Latin America, Europe, and Asia. It offers API management, e-commerce, and digital solutions; graphics engineering, game engineering, gaming experience, VR/AR development, and digital platform services; Big Data services, such as data integration, data architecture, scalable platform, blockchain, data visualization, and data science; testing center, test automation, mobile testing, and load and performance testing services. The company also provides enterprise consumerization services, including enterprise operations, collaboration solutions, cloud development, and talent management; UX design services comprising service, user experience, industrial design, and visual design; and native development, product development, and enterprise mobility services for mobiles. In addition, it engages in the provision of cloud technologies and managed services; wearable application usability and design, hardware integration, data design and management, and native wearable and embedded development activities. Further, the company offers software evolution, IT service management, and software archaeology services; content management system, e-learning solution, digital marketing, and video content production services; and cognitive computing services. It serves medium- to large-sized companies operating in media and entertainment, professional services, technology and telecommunications, travel and hospitality, banks, financial services and insurance, and consumer, and retail and manufacturing industries. The company was formerly known as IT Outsourcing S.L. and changed its name to Globant S.A. in December 2012. Globant S.A. was founded in 2003 and is based in Luxembourg.

Sphere 3D Company Profile

Sphere 3D Corp. provides data management, and desktop and application virtualization solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It enables organizations to deploy a combination of public, private, or hybrid cloud strategies through containerized applications, virtual desktops, virtual storage, and physical hyper-converged platforms. The company offers RDX removable disk systems that provide scalability, centralized management, encryption and duplication, and reliability for backup, archive, data interchange, and disaster recovery; G-Series Appliance and G-Series Cloud applications; and Glassware Open Virtual Appliance and Open Virtual Format products. It also provides HVE converged and hyper-converged Infrastructure solutions, such as HVE-STACK high density server solution; HVE-VELOCITY high availability dual enclosure storage area network solution; and HVE 3DGFX, a virtualized desktop infrastructure solution. In addition, the company offers SnapServer network attached storage solution, a platform for primary or nearline storage for integration with Windows, UNIX/Linux, and Macintosh environments; NEO tape-based backup and long-term archive solutions, including tape libraries, autoloaders, and drives, as well as linear tape file system solutions; and LTO tape drives and media products. Sphere 3D Corp. markets its products under the RDX, Glassware 2.0, SnapCLOUD, SnapServer, SnapSync, NEO, and V3 brand names. The company sells its products through its distributor and reseller network to small and medium businesses, and distributed enterprises. Sphere 3D Corp. was incorporated in 2007 and is headquartered in Mississauga, Canada.

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