Globant (NYSE:GLOB) & Red Violet (NASDAQ:RDVT) Head-To-Head Comparison

Red Violet (NASDAQ:RDVT) and Globant (NYSE:GLOB) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Valuation & Earnings

This table compares Red Violet and Globant”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Red Violet	$75.19 million	9.46	$7.00 million	$0.61	83.54
Globant	$2.42 billion	1.66	$165.73 million	$3.38	26.99

Globant has higher revenue and earnings than Red Violet. Globant is trading at a lower price-to-earnings ratio than Red Violet, 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 Red Violet and Globant, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Red Violet	0	0	0	0	0.00
Globant	0	7	9	0	2.56

Globant has a consensus target price of $174.94, suggesting a potential upside of 91.79%. Given Globant’s stronger consensus rating and higher possible upside, analysts clearly believe Globant is more favorable than Red Violet.

Insider & Institutional Ownership

63.6% of Red Violet shares are owned by institutional investors. Comparatively, 91.6% of Globant shares are owned by institutional investors. 8.9% of Red Violet shares are owned by insiders. Comparatively, 2.7% of Globant shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Red Violet and Globant’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Red Violet	10.87%	10.01%	9.21%
Globant	6.16%	11.08%	7.38%

Risk & Volatility

Red Violet has a beta of 1.78, indicating that its share price is 78% more volatile than the S&P 500. Comparatively, Globant has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500.

Summary

Globant beats Red Violet on 8 of the 14 factors compared between the two stocks.

About Red Violet

Red Violet, Inc., a software and services company, specializes in proprietary technologies and applying analytical capabilities to deliver identity intelligence in the United States. It offers idiCORE, an investigative solution used to address various organizational challenges, which include due diligence, risk mitigation, identity authentication, fraud detection and prevention, customer acquisition, and regulatory compliance; and FOREWARN, an app-based solution that provides instant knowledge before face-to-face engagement with a consumer, as well as helps professionals to identify and mitigate risk. The company serves financial services, insurance, healthcare, retail, telecommunication companies, law enforcement and government agencies, collections, law, corporate security, and investigative firms. It markets its products and services through value-added distributors, resellers, and strategic partners; and trade shows and seminars, advertising, public relations, distribution of sales literature, and product specifications and ongoing communication with prospective customers, distributors, resellers, strategic partners, and installed base of current customers, as well as through direct sales. The company was incorporated in 2017 and is headquartered in Boca Raton, Florida.

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.