Analyzing Globant (GLOB) & DST Systems (DST)

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

Profitability

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

Net Margins Return on Equity Return on Assets
Globant 10.53% 16.03% 12.37%
DST Systems N/A N/A N/A

Dividends

DST Systems pays an annual dividend of $0.72 per share. Globant does not pay a dividend. DST Systems has raised its dividend for 2 consecutive years.

Insider and Institutional Ownership

77.6% of Globant shares are held by institutional investors. Comparatively, 85.7% of DST Systems shares are held by institutional investors. 1.8% of DST Systems shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Globant and DST Systems’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Globant $413.44 million 4.67 $30.53 million $0.88 61.08
DST Systems N/A N/A N/A N/A N/A

Globant has higher revenue and earnings than DST Systems.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Globant and DST Systems, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Globant 0 2 5 0 2.71
DST Systems 0 3 0 0 2.00

Globant presently has a consensus price target of $61.29, suggesting a potential upside of 14.02%. DST Systems has a consensus price target of $72.00, suggesting a potential upside of ∞. Given DST Systems’ higher possible upside, analysts plainly believe DST Systems is more favorable than Globant.

Summary

Globant beats DST Systems on 6 of the 10 factors compared between the two stocks.

About Globant

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.

About DST Systems

DST Systems, Inc. provides technology-based information processing and servicing solutions in the United States, the United Kingdom, Canada, Australia, and internationally. It operates through Domestic Financial Services, International Financial Services, and Healthcare Services segments. The Domestic Financial Services segment provides investor, investment, advisor/intermediary, and asset distribution services to companies in the financial services industry to support direct and intermediary sales of mutual funds, alternative investments, securities brokerage accounts, and retirement plans. Its services include transaction processing; account opening and maintenance; reconciliation of trades, positions, and cash; corporate actions; regulatory reporting and compliance functions; and tax reporting. The International Financial Services segment offers investor and policyholder administration and technology services on a remote processing and business process outsourcing basis to mutual fund managers, insurers, and platform providers, as well as provides solutions related to participant accounting and recordkeeping for clients in the wealth management and retirement savings industries/markets. Its Healthcare Services segment offers software applications to provide healthcare organizations with pharmacy, healthcare administration, and health outcomes optimization solutions for information processing, quality of care, cost management, and payment integrity needs; and healthcare solutions, including claims adjudication, benefit management, care management, business intelligence, and other ancillary services. The company was founded in 1968 and is headquartered in Kansas City, Missouri.

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