Critical Contrast: Open Text Corporation (OTEX) & Its Peers
Open Text Corporation (NASDAQ: OTEX) is one of 97 publicly-traded companies in the “Enterprise Software” industry, but how does it weigh in compared to its rivals? We will compare Open Text Corporation to related businesses based on the strength of its institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.
Volatility & Risk
Open Text Corporation has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500. Comparatively, Open Text Corporation’s rivals have a beta of 1.13, suggesting that their average share price is 13% more volatile than the S&P 500.
This table compares Open Text Corporation and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Open Text Corporation||44.77%||8.92%||4.29%|
|Open Text Corporation Competitors||-24.31%||-204.97%||-7.06%|
Open Text Corporation pays an annual dividend of $0.53 per share and has a dividend yield of 1.6%. Open Text Corporation pays out 12.7% of its earnings in the form of a dividend. As a group, “Enterprise Software” companies pay a dividend yield of 0.8% and pay out 27.3% of their earnings in the form of a dividend. Open Text Corporation is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.
Earnings & Valuation
This table compares Open Text Corporation and its rivals revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Open Text Corporation||$2.29 billion||$631.71 million||8.02|
|Open Text Corporation Competitors||$1.27 billion||$348.15 million||37.10|
Open Text Corporation has higher revenue and earnings than its rivals. Open Text Corporation is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Institutional & Insider Ownership
66.3% of Open Text Corporation shares are held by institutional investors. Comparatively, 60.4% of shares of all “Enterprise Software” companies are held by institutional investors. 10.6% of Open Text Corporation shares are held by company insiders. Comparatively, 22.5% of shares of all “Enterprise Software” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This is a breakdown of recent recommendations for Open Text Corporation and its rivals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Open Text Corporation||0||1||7||0||2.88|
|Open Text Corporation Competitors||342||2029||3872||107||2.59|
Open Text Corporation presently has a consensus price target of $42.29, suggesting a potential upside of 26.76%. As a group, “Enterprise Software” companies have a potential upside of 3.86%. Given Open Text Corporation’s stronger consensus rating and higher possible upside, research analysts plainly believe Open Text Corporation is more favorable than its rivals.
Open Text Corporation beats its rivals on 11 of the 15 factors compared.
Open Text Corporation Company Profile
Open Text Corporation provides a platform and suite of software products and services that assist organizations in finding, utilizing, and sharing business information from any device. The Company designs, develops, markets and sells Enterprise Information Management (EIM) software and solutions. Its EIM offerings include Enterprise Content Management (ECM), Business Process Management (BPM), Customer Experience Management (CEM), Business Network, Discovery and Analytics. Its software and services allow organizations to manage the information that flows into, out of, and throughout the enterprise as part of daily operations. Its solutions incorporate collaborative and mobile technologies and are delivered for on-premises deployment, as well as through cloud, hybrid and managed hosted services models. In addition, the Company provides solutions that facilitate the exchange of information and transactions that occur between supply chain participants.
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