Head-To-Head Analysis: Inovalon Holdings (INOV) versus Globant (GLOB)
Inovalon Holdings (NASDAQ: INOV) and Globant (NYSE:GLOB) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.
Insider and Institutional Ownership
28.7% of Inovalon Holdings shares are owned by institutional investors. Comparatively, 66.1% of Globant shares are owned by institutional investors. 48.3% of Inovalon Holdings shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a breakdown of current ratings and target prices for Inovalon Holdings and Globant, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Inovalon Holdings currently has a consensus price target of $14.00, suggesting a potential downside of 18.13%. Globant has a consensus price target of $44.86, suggesting a potential upside of 7.16%. Given Globant’s stronger consensus rating and higher possible upside, analysts clearly believe Globant is more favorable than Inovalon Holdings.
Earnings & Valuation
This table compares Inovalon Holdings and Globant’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Inovalon Holdings||$419.99 million||5.94||$67.35 million||$0.11||155.47|
|Globant||$357.94 million||4.08||$51.92 million||$0.87||48.11|
Inovalon Holdings has higher revenue and earnings than Globant. Globant is trading at a lower price-to-earnings ratio than Inovalon Holdings, indicating that it is currently the more affordable of the two stocks.
This table compares Inovalon Holdings and Globant’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
Inovalon Holdings has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500. Comparatively, Globant has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500.
Globant beats Inovalon Holdings on 8 of the 14 factors compared between the two stocks.
About Inovalon Holdings
Inovalon Holdings, Inc. (Inovalon) is a technology company. The Company provides cloud-based platforms empowering a data-driven transformation from volume-based to value-based models to the healthcare industry. Leveraging large-scale data interconnectivity capabilities, unparalleled proprietary data sets, advanced analytics, data-driven intervention systems, and subject matter expertise, Inovalon enables the assessment and improvement of clinical and quality outcomes and financial performance across the healthcare ecosystem. The Company serves clients across the healthcare industry, which includes health plans and provider organizations, pharmaceutical, medical device, and diagnostics companies. It provides technology that supports approximately 500 healthcare organizations. Inovalon’s platforms are informed by data pertaining to more than 856,000 physicians, 375,000 clinical facilities, and more than 158 million Americans.
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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