Head to Head Survey: Open Text (OTEX) and ExactTarget (ET)
Open Text (NASDAQ: OTEX) and ExactTarget (NYSE:ET) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, risk, valuation, profitability and earnings.
This table compares Open Text and ExactTarget’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent recommendations and price targets for Open Text and ExactTarget, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Open Text presently has a consensus price target of $42.70, suggesting a potential upside of 31.26%. ExactTarget has a consensus price target of $20.25, suggesting a potential upside of Infinity. Given ExactTarget’s stronger consensus rating and higher possible upside, analysts plainly believe ExactTarget is more favorable than Open Text.
Open Text pays an annual dividend of $0.53 per share and has a dividend yield of 1.6%. ExactTarget does not pay a dividend. Open Text pays out 93.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Insider & Institutional Ownership
66.8% of Open Text shares are owned by institutional investors. 10.6% of Open Text shares are owned by company 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.
Earnings & Valuation
This table compares Open Text and ExactTarget’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Open Text||$2.29 billion||3.77||$1.03 billion||$0.57||57.07|
Open Text has higher revenue and earnings than ExactTarget. ExactTarget is trading at a lower price-to-earnings ratio than Open Text, indicating that it is currently the more affordable of the two stocks.
Open Text beats ExactTarget on 9 of the 12 factors compared between the two stocks.
About Open Text
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.
ExactTarget, Inc. is a global provider of cross-channel, interactive marketing software-as-a-service (SaaS) solutions. The Company’s solutions provide marketers with a suite of integrated applications. The Company’s suite of cross-channel, interactive marketing applications include e-mail, mobile, social media and sites, is built on its flexible multi-tenant SaaS platform. These channel applications are integrated with its campaign management, calendaring, dashboard, integrated reporting, marketing automation and data management tools. The Company also provides open application programming interfaces (APIs) and developer tools that allow third parties to embed its technology into their solutions and build applications on its platform. The Company generates revenue through the sale of subscriptions to its suite of cross-channel, interactive marketing SaaS solutions and the delivery of professional services. In October 2012, it acquired iGoDigital.
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