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

Dividends

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EPIQ Systems pays an annual dividend of $0.36 per share. Globant does not pay a dividend. EPIQ Systems pays out -81.8% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Globant and EPIQ Systems’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Globant $322.86 million 5.02 $35.87 million $0.82 56.31
EPIQ Systems N/A N/A N/A ($0.44) N/A

Globant has higher revenue and earnings than EPIQ Systems. EPIQ Systems 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

64.0% of Globant shares are held by institutional investors. Comparatively, 84.9% of EPIQ Systems shares are held by institutional investors. 10.1% of EPIQ Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Globant and EPIQ Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Globant 7.60% 13.55% 9.72%
EPIQ Systems -3.96% -7.36% -2.71%

Analyst Ratings

This is a summary of current recommendations and price targets for Globant and EPIQ Systems, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Globant 0 3 3 0 2.50
EPIQ Systems 0 0 0 0 N/A

Globant currently has a consensus target price of $46.20, indicating a potential upside of 0.06%.

Summary

Globant beats EPIQ Systems on 7 of the 10 factors compared between the two stocks.

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.

EPIQ Systems Company Profile

Epiq Systems, Inc. (Epiq) is a provider of professional services and integrated technology for the legal profession. The Company operates in two segments: the Technology segment (Technology), which provides eDiscovery managed services and technology solutions consisting of consulting, collections and forensics, processing, search and review, production of documents and document review services to companies and law firms, and the Bankruptcy and Settlement Administration segment (Bankruptcy and Settlement Administration), which provides managed services and technology solutions that address the needs of its customers with respect to litigation, claims and project administration, compliance matters, controlled disbursements, corporate restructuring, bankruptcy and class action proceedings. Its solutions and professional services cater to a range of client legal matters, including litigation, investigations, financial transactions and regulatory compliance, among others.

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