OTEX vs. SPSC, SGMS, PEGA, GDDY, LDOS, IOT, JKHY, PSN, CACI, and LNW
Should you be buying Open Text stock or one of its competitors? The main competitors of Open Text include SPS Commerce (SPSC), Scientific Games (SGMS), Pegasystems (PEGA), GoDaddy (GDDY), Leidos (LDOS), Samsara (IOT), Jack Henry & Associates (JKHY), Parsons (PSN), CACI International (CACI), and Light & Wonder (LNW).
SPS Commerce (NASDAQ:SPSC) and Open Text (NASDAQ:OTEX) are both mid-cap business services companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, dividends, risk, media sentiment and community ranking.
SPS Commerce received 58 more outperform votes than Open Text when rated by MarketBeat users. Likewise, 73.83% of users gave SPS Commerce an outperform vote while only 67.57% of users gave Open Text an outperform vote.
Open Text has higher revenue and earnings than SPS Commerce. Open Text is trading at a lower price-to-earnings ratio than SPS Commerce, indicating that it is currently the more affordable of the two stocks.
SPS Commerce has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, Open Text has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.
SPS Commerce currently has a consensus price target of $200.25, indicating a potential upside of 9.05%. Open Text has a consensus price target of $42.25, indicating a potential upside of 52.53%. Given SPS Commerce's higher possible upside, analysts clearly believe Open Text is more favorable than SPS Commerce.
99.0% of SPS Commerce shares are held by institutional investors. Comparatively, 70.4% of Open Text shares are held by institutional investors. 1.0% of SPS Commerce shares are held by insiders. Comparatively, 10.6% of Open Text shares are held by 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.
SPS Commerce has a net margin of 12.23% compared to SPS Commerce's net margin of 2.85%. SPS Commerce's return on equity of 24.45% beat Open Text's return on equity.
In the previous week, Open Text had 3 more articles in the media than SPS Commerce. MarketBeat recorded 6 mentions for Open Text and 3 mentions for SPS Commerce. Open Text's average media sentiment score of 1.64 beat SPS Commerce's score of 0.73 indicating that SPS Commerce is being referred to more favorably in the media.
Summary
SPS Commerce beats Open Text on 11 of the 18 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding OTEX and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Skip ChartThis chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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