Head-To-Head Analysis: Criteo (NASDAQ:CRTO) vs. Globant (NYSE:GLOB)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Globant	4.44%	10.76%	7.03%
Criteo	7.10%	16.91%	8.53%

Institutional and Insider Ownership

91.6% of Globant shares are held by institutional investors. Comparatively, 94.3% of Criteo shares are held by institutional investors. 2.7% of Globant shares are held by insiders. Comparatively, 1.7% of Criteo shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Globant has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500. Comparatively, Criteo has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Globant and Criteo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Globant	1	9	7	0	2.35
Criteo	2	3	5	0	2.30

Globant presently has a consensus target price of $122.13, indicating a potential upside of 104.60%. Criteo has a consensus target price of $40.00, indicating a potential upside of 94.84%. Given Globant’s stronger consensus rating and higher possible upside, research analysts clearly believe Globant is more favorable than Criteo.

Valuation and Earnings

This table compares Globant and Criteo”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Globant	$2.42 billion	1.09	$165.73 million	$2.46	24.26
Criteo	$1.93 billion	0.61	$111.57 million	$2.39	8.59

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

Summary

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

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.

About Criteo

Criteo S.A., a technology company, provides marketing and monetization services on the open Internet in North and South America, Europe, the Middle East, Africa, and the Asia-Pacific. The company's Criteo Shopper Graph, which derives clients' proprietary commerce data, such as transaction activity on their digital properties. It also offers Criteo AI Engine solutions, including lookalike finder, recommendation, and predictive bidding algorithms; recommendation algorithms, dynamic creative optimization+, sponsored product placement algorithms, and other product placement algorithms. The company's technology comprises data synchronization, storage, and analysis of distributed computing infrastructure in various geographies, as well as fast data collection and retrieval using multi-layered caching infrastructure; and experimentation platform, an offline/online testing platform to enhance the capabilities and effectiveness of prediction models. In addition, it provides Criteo Marketing Solutions that allow commerce companies to address various marketing goals by engaging their consumers with personalized ads across the web, mobile, and offline store environments; and Criteo Retail Media solutions, which allows retailers to generate advertising revenues from consumer brands, and/or to drive sales for themselves, by monetizing their data and audiences through personalized ads, either on their own digital property or on the open Internet. Further, the company offers real-time advertising technology and trading infrastructure, delivering advanced media buying, selling, and packaging capabilities for media owners, agencies, performance advertisers, and third-party AdTech platforms. It serves companies in digital retail, travel, and classifieds sectors. Criteo S.A. was incorporated in 2005 and is headquartered in Paris, France.