Open Text (NASDAQ:OTEX – Get Free Report) and Waystar (NASDAQ:WAY – Get Free Report) are both mid-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, profitability, valuation, earnings and risk.
Insider & Institutional Ownership
70.4% of Open Text shares are held by institutional investors. 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.
Profitability
This table compares Open Text and Waystar’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Open Text | 8.06% | 25.00% | 6.44% |
Waystar | N/A | N/A | N/A |
Analyst Ratings
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Open Text | 0 | 8 | 4 | 0 | 2.33 |
Waystar | 0 | 0 | 11 | 0 | 3.00 |
Open Text currently has a consensus price target of $38.80, suggesting a potential upside of 14.76%. Waystar has a consensus price target of $29.40, suggesting a potential upside of 5.45%. Given Open Text’s higher probable upside, equities research analysts clearly believe Open Text is more favorable than Waystar.
Earnings & Valuation
This table compares Open Text and Waystar”s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Open Text | $5.77 billion | 1.58 | $465.09 million | $0.62 | 54.53 |
Waystar | $791.01 million | 5.87 | -$51.33 million | N/A | N/A |
Open Text has higher revenue and earnings than Waystar.
Summary
Open Text beats Waystar on 8 of the 11 factors compared between the two stocks.
About Open Text
Open Text Corporation provides information management software and solutions. The company offers content services, which includes content collaboration and intelligent capture to records management, collaboration, e-signatures, and archiving; and operates experience cloud platform that provides customer experience and web content management, digital asset management, customer analytics, AI and insights, e-discovery, digital fax, omnichannel communications, secure messaging, and voice of customer, as well as customer journey, testing, and segmentation. It also provides cybersecurity cloud solutions to protect, prevent, detect, respond and quickly recover from threats across endpoints, network, applications, IT infrastructure and data, AI-led threat intelligence; and to protect critical information and processes through threat intelligence, forensics, identity, encryption, and cloud-based application security. In addition, the company offers business network cloud for digital supply chains and secure e-commerce ecosystems including digitize and automate procure-to-pay and order-to-cash processes; IT operations management cloud for automation and advancement of IT support and asset management; and analytics & AI cloud solutions that offers artificial intelligence with practical usage to provide organizations with actionable insights and better automation, such as visualizations, advanced natural language processing and understanding, and integrated computer vision capabilities. In addition, it provides application automation cloud, developers cloud, and services. Further, it has strategic partnerships with SAP SE, Google Cloud, Amazon AWS, Microsoft Corporation, Oracle Corporation, Salesforce.com Corporation, DXC Technology Company, Accenture plc, Capgemini Technology Services SAS, Deloitte Consulting LLP, Hewlett Packard Enterprises, and Tata Consultancy Services. Open Text Corporation was incorporated in 1991 and is headquartered in Waterloo, Canada.
About Waystar
Waystar Holding Corp. is a software company which provide healthcare payments. Waystar Holding Corp. is based in LEHI, Utah.
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