Globant (GLOB) vs. Inovalon Holdings (INOV) Head-To-Head Analysis

Inovalon Holdings (NASDAQ: INOV) and Globant (NYSE:GLOB) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.

Profitability

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
Inovalon Holdings 4.13% 5.17% 3.38%
Globant 8.61% 15.08% 10.96%

Valuation & Earnings

This table compares Inovalon Holdings and Globant’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Inovalon Holdings $419.99 million 5.82 $67.35 million $0.11 152.29
Globant $357.94 million 3.69 $51.92 million $0.87 43.45

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.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Inovalon Holdings and Globant, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Inovalon Holdings 1 5 1 0 2.00
Globant 0 4 4 0 2.50

Inovalon Holdings currently has a consensus target price of $14.00, suggesting a potential downside of 16.42%. Globant has a consensus target price of $44.86, suggesting a potential upside of 18.67%. Given Globant’s stronger consensus rating and higher probable upside, analysts clearly believe Globant is more favorable than Inovalon Holdings.

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 insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and 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.

Summary

Globant beats Inovalon Holdings on 8 of the 14 factors compared between the two stocks.

Inovalon Holdings Company Profile

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 Company Profile

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.

Receive News & Ratings for Inovalon Holdings Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Inovalon Holdings Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply