Globant (NYSE:GLOB) versus Vasta Platform (NASDAQ:VSTA) Financial Contrast

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Globant	4.63%	9.28%	6.18%
Vasta Platform	27.31%	1.53%	1.06%

Earnings and Valuation

This table compares Globant and Vasta Platform”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Globant	$2.45 billion	0.72	$102.92 million	$2.55	15.91
Vasta Platform	$1.74 billion	0.23	$90.19 million	$1.02	4.80

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

Risk and Volatility

Globant has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500. Comparatively, Vasta Platform has a beta of -0.29, meaning that its share price is 129% less volatile than the S&P 500.

Insider & Institutional Ownership

91.6% of Globant shares are held by institutional investors. Comparatively, 15.8% of Vasta Platform shares are held by institutional investors. 2.7% of Globant shares are held by insiders. Comparatively, 2.0% of Vasta Platform shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for Globant and Vasta Platform, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Globant	2	11	5	0	2.17
Vasta Platform	1	1	0	0	1.50

Globant presently has a consensus price target of $46.38, suggesting a potential upside of 14.28%. Given Globant’s stronger consensus rating and higher possible upside, analysts clearly believe Globant is more favorable than Vasta Platform.

Summary

Globant beats Vasta Platform on 13 of the 14 factors compared between the two stocks.

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.

About Vasta Platform

Vasta Platform Limited provides educational printed and digital solutions to private schools operating in the K-12 education sector in Brazil. The company offers digital and printed textbooks, teacher handbooks, exercise books, multidisciplinary subject books, and student evaluations; and PAR platform that allows schools to select their preferred books and materials and follow their own specific teaching methods. It also provides traditional learning systems under the Anglo, Pitágoras, Rede Cristã de Educação, Maxi Ético, Fibonacci, Mackenzie, and Amplia brands; ongoing training for educators; and services to partner schools, including consulting services for school management and the organization of events, and a proprietary and differentiated evaluation system for partner schools and their students. In addition, the company offers Plurall that provides a digital learning experience and allows for tailor-made adjustments for each school; Plurall Maestro that develops digital solutions to help educators in planning and conducting classes; PROFS, a teacher training program; O Líder em Mim, a program with content, methodology, teaching material, and training to develop leadership; English Stars, an English educational platform; EduAll, a bilingual program to enhance its current solutions; Plurall Olímpico, a content for scientific competitions; MindMakers to develop leadership, collaboration, and persistence through multidisciplinary problem-solving exercises; Matific that provides interactive learning environments and adaptable worksheets; Plurall Store; Plurall Adapta for adaptive learning sessions; Plurall MeuProf to connect students with professors for private tutoring; Prepara to prepare students for external assessments; Leader in Me to develop socio-emotional competencies of K12 students; Education Systems, a structured teaching system for K12 students and teachers; and Prepara ENEM. Vasta Platform Limited was founded in 1966 and is based in São Paulo, Brazil.