Globant (NYSE: GLOB) and ManTech International Corporation (NASDAQ:MANT) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.

Profitability

This table compares Globant and ManTech International Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Globant 8.61% 15.08% 10.96%
ManTech International Corporation 3.59% 4.73% 3.69%

Dividends

ManTech International Corporation pays an annual dividend of $0.42 per share and has a dividend yield of 1.0%. Globant does not pay a dividend. ManTech International Corporation pays out 27.6% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Globant and ManTech International Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Globant $357.94 million 3.78 $51.92 million $0.87 44.47
ManTech International Corporation $1.64 billion 0.64 $126.19 million $1.52 26.71

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

Risk & Volatility

Globant has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, ManTech International Corporation has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500.

Insider & Institutional Ownership

66.5% of Globant shares are owned by institutional investors. Comparatively, 62.4% of ManTech International Corporation shares are owned by institutional investors. 35.1% of ManTech International Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Globant and ManTech International Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Globant 0 3 3 0 2.50
ManTech International Corporation 2 3 3 0 2.13

Globant currently has a consensus price target of $44.00, suggesting a potential upside of 13.72%. ManTech International Corporation has a consensus price target of $39.80, suggesting a potential downside of 1.97%. Given Globant’s stronger consensus rating and higher possible upside, research analysts clearly believe Globant is more favorable than ManTech International Corporation.

Summary

Globant beats ManTech International Corporation on 9 of the 15 factors compared between the two stocks.

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.

ManTech International Corporation Company Profile

ManTech International Corporation provides technologies and solutions for national security programs for the intelligence community; the departments of Defense, State, Homeland Security, Health and Human Services, Veteran Affairs and Justice, including the Federal Bureau of Investigation (FBI); the space community, and other the United States Government customers. It delivers an array of information technology (IT) and technical services solutions. Its solutions and services include cybersecurity; software and systems development; enterprise IT; multi-disciplined intelligence; command, control, communications, computers, intelligence, surveillance and reconnaissance; program protection and mission assurance; systems engineering; supply chain management and logistics; test and evaluation; training, and management consulting. It supports programs of national significance, such as military readiness and wellness, terrorist threat detection, information security and border protection.

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