Critical Analysis: Globant (NYSE:GLOB) & SilverSun Technologies (NASDAQ:SSNT)

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

Insider and Institutional Ownership

58.7% of SilverSun Technologies shares are held by institutional investors. Comparatively, 91.6% of Globant shares are held by institutional investors. 35.7% of SilverSun Technologies 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 company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for SilverSun Technologies and Globant, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SilverSun Technologies	0	0	0	0	N/A
Globant	0	5	12	0	2.71

Globant has a consensus price target of $244.35, indicating a potential upside of 27.90%. Given Globant’s higher probable upside, analysts plainly believe Globant is more favorable than SilverSun Technologies.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SilverSun Technologies	-1.96%	-12.38%	-5.32%
Globant	7.56%	11.38%	8.14%

Valuation and Earnings

This table compares SilverSun Technologies and Globant’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SilverSun Technologies	$54.52 million	1.44	-$1.07 million	($0.20)	-73.80
Globant	$2.10 billion	3.93	$158.54 million	$3.63	52.63

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

Risk & Volatility

SilverSun Technologies has a beta of 2.15, indicating that its stock price is 115% more volatile than the S&P 500. Comparatively, Globant has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.

Summary

Globant beats SilverSun Technologies on 11 of the 13 factors compared between the two stocks.

About SilverSun Technologies

SilverSun Technologies, Inc. operates as a business application, technology, and consulting company in North America. The company provides solutions for accounting and business management, financial reporting, enterprise resource planning, human capital management, warehouse management systems, customer relationship management, and business intelligence. It also offers value-added services that focuses on consulting and professional, specialized programming, training, and technical support services. In addition, the company provides information technology managed services, such as cybersecurity, application hosting, disaster recovery, business continuity, cloud, and other services; and data back-up, network maintenance, and upgrade services. It serves small and medium-sized businesses primarily in the manufacturing, distribution, and service industries. The company was formerly known as Trey Resources, Inc. and changed its name to SilverSun Technologies, Inc. in June 2011. SilverSun Technologies, Inc. is headquartered in East Hanover, New Jersey.

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.