Head to Head Survey: Globant (NYSE:GLOB) and Global Blue Group (NYSE:GB)

Global Blue Group (NYSE:GB) and Globant (NYSE:GLOB) are both business services companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings for Global Blue Group and Globant, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Blue Group	0	0	1	0	3.00
Globant	1	6	12	0	2.58

Global Blue Group presently has a consensus target price of $6.00, indicating a potential downside of 2.44%. Globant has a consensus target price of $229.06, indicating a potential upside of 0.57%. Given Globant’s higher possible upside, analysts plainly believe Globant is more favorable than Global Blue Group.

Insider & Institutional Ownership

89.7% of Global Blue Group shares are held by institutional investors. Comparatively, 91.6% of Globant shares are held by institutional investors. 5.2% of Global Blue Group shares are held by company insiders. Comparatively, 2.7% of Globant shares are held by company 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.

Profitability

This table compares Global Blue Group and Globant’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Global Blue Group	10.29%	44.01%	3.34%
Globant	7.20%	11.65%	7.88%

Earnings & Valuation

This table compares Global Blue Group and Globant”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Blue Group	$464.36 million	2.64	$15.12 million	$0.21	29.29
Globant	$2.10 billion	4.68	$158.54 million	$3.83	59.47

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

Volatility and Risk

Global Blue Group has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500. Comparatively, Globant has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500.

Summary

Globant beats Global Blue Group on 10 of the 14 factors compared between the two stocks.

About Global Blue Group

Global Blue Group Holding AG, together with its subsidiaries, provides technology-enabled transaction processing services for merchants, banks, acquirers, governments, and travelers in Europe, the Asia Pacific, and internationally. The company operates in three segments: Tax Free Shopping Technology Solutions (TFSS), Added-Value Payment Solutions (AVPS), and Retail Tech Solutions (RTS). It offers TFSS, a value added tax (VAT) refund service that allows eligible shoppers to reclaim VAT on goods purchased outside of their home country; and intelligence and marketing services. The company also provides AVPS, a service which enables customers to pay in their choice of preferred currency, home or destination, and at the point of sale (POS) when shopping outside of their home country under the Dynamic Currency Choice and Currency Select brands. In addition, it offers currency conversion services for POS, e-commerce return solutions, dynamic currency conversion (DCC) services, and DCC services at ATMs, as well as multi-currency processing services for online retailers. Further, the company provides ZigZag, a technology platform that fully digitalizes the eCommerce returns experience and enhances the process for both retailers and consumers; Yocuda that enables retailers to send digital receipts to their customers; and ShipUp, a post-purchase engagement solution for online purchases enabling brands to deliver seamless, proactive, and branded post-purchase communication. Global Blue Group Holding AG was founded in 1980 and is headquartered in Wangen-Brüttisellen, Switzerland.

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.