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 peers? We will compare Open Text Corporation to related companies based on the strength of its institutional ownership, dividends, risk, earnings, analyst recommendations, profitability and valuation.
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 peers, given its higher yield and lower payout ratio.
Volatility & Risk
Open Text Corporation has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500. Comparatively, Open Text Corporation’s peers have a beta of 1.13, suggesting that their average stock price is 13% more volatile than the S&P 500.
Valuation and Earnings
This table compares Open Text Corporation and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Open Text Corporation||$2.29 billion||$631.71 million||8.09|
|Open Text Corporation Competitors||$1.27 billion||$348.15 million||37.72|
Open Text Corporation has higher revenue and earnings than its peers. Open Text Corporation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
This table compares Open Text Corporation and its peers’ 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||-25.29%||-211.37%||-8.18%|
This is a breakdown of current recommendations and price targets for Open Text Corporation and its peers, as provided 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||2039||3878||107||2.59|
Open Text Corporation currently has a consensus price target of $42.29, suggesting a potential upside of 25.66%. As a group, “Enterprise Software” companies have a potential upside of 4.12%. Given Open Text Corporation’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Open Text Corporation is more favorable than its peers.
Institutional & Insider Ownership
66.3% of Open Text Corporation shares are owned by institutional investors. Comparatively, 60.4% of shares of all “Enterprise Software” companies are owned by institutional investors. 10.6% of Open Text Corporation shares are owned by company insiders. Comparatively, 22.5% of shares of all “Enterprise Software” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Open Text Corporation beats its peers 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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