Contrasting Globant (NYSE:GLOB) & Ooma (NYSE:OOMA)

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

Earnings and Valuation

This table compares Globant and Ooma’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Globant $522.31 million 7.39 $51.68 million $1.39 76.31
Ooma $129.23 million 1.95 -$14.57 million ($0.69) -17.61

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

Insider and Institutional Ownership

79.1% of Globant shares are owned by institutional investors. Comparatively, 75.7% of Ooma shares are owned by institutional investors. 10.2% of Ooma shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Globant has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, Ooma has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Globant 9.77% 16.35% 12.36%
Ooma -11.75% -42.73% -18.63%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Globant and Ooma, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Globant 0 2 6 0 2.75
Ooma 0 1 4 0 2.80

Globant currently has a consensus price target of $84.25, suggesting a potential downside of 20.57%. Ooma has a consensus price target of $17.88, suggesting a potential upside of 47.12%. Given Ooma’s stronger consensus rating and higher probable upside, analysts clearly believe Ooma is more favorable than Globant.

Summary

Globant beats Ooma on 10 of the 14 factors compared between the two stocks.

Globant Company Profile

Globant S.A., a technology services company, provides services related to application development, testing, infrastructure management, and application maintenance worldwide. The company offers machine learning, pattern recognition, natural language understanding, future of organizations, customer insight, behavioral change, product innovation, design thinking, product management discovery and delivery, and product coaching services. It also provides process appraisal, automated, process evolution, delivery management, agile consultancy, management consulting, user experience, visual and service, industrial design, mobile engineering, fast prototyping, and mobile and product strategy services. In addition, the company offers game engineering and experience, digital platform, virtual and augmented reality, graphics engineering, 3D and 2D art, e-Sports, data architecture, data science, distributed platform, data integration, data visualization, and blockchain services. Further, it provides Internet of things experience and consultancy, platform, hardware integration, content management system, e-learning, video content production, OTT, and Cloud Ops Studio services. Additionally, the company offers functional testing, load and performance testing, mobile testing, test automation, large scale Web applications, hybrid and cross-compiled development, accessibility, API management, micro, complex architecture, software archaeology, IT service management, and software evolution services, as well as services over platforms. It serves medium- to large-sized companies operating in media and entertainment, professional services, technology and telecommunications, travel and hospitality, banks, financial services and insurance, and consumer, and retail and manufacturing industries. 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 City, Luxembourg.

Ooma Company Profile

Ooma, Inc. creates connected experiences for businesses and consumers in the United States, Canada, and internationally. The company's smart cloud-based SaaS platform serves as a communications hub, which offers cloud-based communications solutions, smart security, and other connected services. Its business and residential solutions deliver PureVoice high-definition voice quality, advanced functionality, and integration with mobile devices; and platform helps to create smart workplace and homes by offering communications, monitoring, security, automation, productivity, and networking infrastructure applications. The company's products and services include Ooma Office, a multi-user communications system that provides everything needed to manage communications in and out of the office for small businesses; Ooma Office Mobile HD app to make, receive, and transfer phone calls; and Ooma Enterprise, an unified-communications-as-a-service. It also provides Ooma Telo, a home communications solution designed to serve as the primary phone line in the home; Ooma Telo Air, a solution that connects to the Internet wirelessly using the home's Wi-Fi network and can be paired with mobile phones to answer incoming mobile calls from any phone in the home; and Ooma HD3 cordless handset. In addition, the company offers Ooma Premier Service, a suite of advanced calling features to enhance the capabilities of Ooma Telo; and Ooma Mobile HD app that allows users to make and receive phone calls and access Ooma features and settings with iOS or Android device over a Wi-Fi or cellular data connection. Further, it provides Ooma Smart Security, a security and monitoring platform; Ooma Smart Cam, an indoor/outdoor high-definition video security camera; and Talkatone mobile app. The company offers its products through direct sales, retailers, distributors, and resellers, as well as online. Ooma, Inc. was incorporated in 2003 and is headquartered in Sunnyvale, California.

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