Analyzing Globant (NYSE:GLOB) & Applied Digital (NASDAQ:APLD)

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

Risk & Volatility

Applied Digital has a beta of 5.72, suggesting that its stock price is 472% more volatile than the S&P 500. Comparatively, Globant has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500.

Institutional and Insider Ownership

65.7% of Applied Digital shares are held by institutional investors. Comparatively, 91.6% of Globant shares are held by institutional investors. 9.5% of Applied Digital shares are held by company insiders. Comparatively, 2.7% of Globant shares are held by company insiders. 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Applied Digital	-37.78%	-16.42%	-4.00%
Globant	4.63%	9.28%	6.18%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Applied Digital and Globant, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Applied Digital	2	1	11	3	2.88
Globant	2	11	5	0	2.17

Applied Digital currently has a consensus price target of $68.15, indicating a potential upside of 158.44%. Globant has a consensus price target of $46.38, indicating a potential upside of 18.27%. Given Applied Digital’s stronger consensus rating and higher probable upside, research analysts clearly believe Applied Digital is more favorable than Globant.

Valuation and Earnings

This table compares Applied Digital and Globant”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Applied Digital	$611.31 million	12.57	-$244.00 million	($0.89)	-29.63
Globant	$2.45 billion	0.70	$102.92 million	$2.55	15.38

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

Summary

Globant beats Applied Digital on 8 of the 15 factors compared between the two stocks.

About Applied Digital

Applied Digital Corporation designs, develops, and operates datacenters in North America. Its datacenters provide digital infrastructure solutions to the high-performance computing industry. The company also provides artificial intelligence cloud services, high performance computing datacenter hosting, and crypto datacenter hosting services. The company was formerly known as Applied Blockchain, Inc. and changed its name to Applied Digital Corporation in November 2022. Applied Digital Corporation is based in Dallas, Texas.

About Globant

Globant S.A., together with its subsidiaries, provides technology services worldwide. It provides digital solutions comprising blockchain, cloud technologies, cybersecurity, data and artificial intelligence, digital experience and performance, code, Internet of Things, metaverse, and engineering and testing; and enterprise technology solutions and services, such as Agile organization, Cultural Hacking, process optimization services, as well as AWS, Google Cloud, Microsoft, Oracle, SalesForce, SAP, and ServiceNow technology solutions. Further, the company provides e-commerce, conversational interfaces, design, digital marketing, and digital product delivery services. Additionally, it operates Augoor, an AI-powered platform; MagnifAI, an AI-powered solution for software quality assurance; StarMeUp, a science-based AI platform; WaaSabi, a finance platform; Walmeric, a lead-to-revenue management platform; GeneXus, a suit of AI development tools; Navigate for process optimization powerhouse; BeHealthy, a white-label platform; and FluentLab, an AI conversational and engagement solution. The company offers its services to various industries, including media and entertainment, professional services, technology and telecommunications, travel and hospitality, banks, financial services and insurance, consumer, retail and manufacturing, health care, and others. 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, Luxembourg.