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

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

Institutional and Insider Ownership

91.6% of Globant shares are owned by institutional investors. Comparatively, 65.7% of Applied Digital shares are owned by institutional investors. 2.7% of Globant shares are owned by insiders. Comparatively, 9.5% of Applied Digital shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Globant and Applied Digital’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%
Applied Digital	-37.78%	-16.42%	-4.00%

Valuation & Earnings

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

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

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.

Analyst Ratings

This is a summary of current ratings and price targets for Globant and Applied Digital, as provided by MarketBeat.

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

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

Risk and Volatility

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

Summary

Globant beats Applied Digital on 8 of the 15 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 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.