Analyzing Globant (NYSE:GLOB) and Tyler Technologies (NYSE:TYL)

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

Analyst Ratings

This is a summary of current recommendations and price targets for Globant and Tyler Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Globant	0	7	8	0	2.53
Tyler Technologies	0	3	8	0	2.73

Globant currently has a consensus target price of $139.47, indicating a potential upside of 148.38%. Tyler Technologies has a consensus target price of $688.27, indicating a potential upside of 26.23%. Given Globant’s higher possible upside, analysts plainly believe Globant is more favorable than Tyler Technologies.

Profitability

This table compares Globant and Tyler Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Globant	4.44%	10.76%	7.03%
Tyler Technologies	13.66%	10.34%	6.87%

Risk and Volatility

Globant has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, Tyler Technologies has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500.

Earnings and Valuation

This table compares Globant and Tyler Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Globant	$2.42 billion	1.02	$165.73 million	$2.46	22.83
Tyler Technologies	$2.14 billion	11.03	$263.03 million	$7.00	77.89

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

Institutional & Insider Ownership

91.6% of Globant shares are held by institutional investors. Comparatively, 93.3% of Tyler Technologies shares are held by institutional investors. 2.7% of Globant shares are held by company insiders. Comparatively, 1.1% of Tyler Technologies shares are held 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.

Summary

Tyler Technologies beats Globant on 7 of the 13 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 Tyler Technologies

Tyler Technologies, Inc. provides integrated information management solutions and services for the public sector. It operates in two segments, Enterprise Software and Platform Technologies. The company offers platform and transformative technology solutions, including cybersecurity for government agencies; data and insights solutions; digital solutions that helps workers and policymakers to share, communicate, and leverage data; payments solutions, such as billing, presentment, merchant onboarding, collections, reconciliation, and disbursements; platform technologies, an application development platform that enables government workers to build solutions and applications; and outdoor recreation solutions, including campsite reservations, activity registrations, licensing sales and renewals, and real-time data for conservation and park management. It also provides public administration solutions, such as civic services; financial applications with human resources, revenue management, tax billing, utilities, asset management, and payment processing; property and recording service that manages appraisal services, valuation, tax billing and collections, assessment administration, and land and official records; and permitting, licensing, and regulatory management solutions. In addition, the company offers courts and public safety solutions; school ERP and student transportation solutions for K-12 schools; and health and human services solutions. Further, the company offers software as a service arrangements and electronic document filing solutions for courts; software and hardware installation, data conversion, training, product modification, and maintenance and support services; and property appraisal outsourcing services for taxing jurisdictions. Tyler Technologies, Inc. has a strategic collaboration agreement with Amazon Web Services for cloud hosting services. The company was founded in 1966 and is headquartered in Plano, Texas.