Open Text (NASDAQ:OTEX) and OptimizeRx (NASDAQ:OPRX) Critical Comparison

OptimizeRx (NASDAQ:OPRX) and Open Text (NASDAQ:OTEX) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Institutional and Insider Ownership

76.5% of OptimizeRx shares are owned by institutional investors. Comparatively, 70.4% of Open Text shares are owned by institutional investors. 5.6% of OptimizeRx shares are owned by company insiders. Comparatively, 10.6% of Open Text shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares OptimizeRx and Open Text’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OptimizeRx	0.03%	6.37%	4.46%
Open Text	8.42%	23.60%	6.94%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for OptimizeRx and Open Text, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OptimizeRx	1	2	5	0	2.50
Open Text	0	11	3	0	2.21

OptimizeRx presently has a consensus target price of $20.50, suggesting a potential upside of 172.24%. Open Text has a consensus target price of $35.75, suggesting a potential upside of 38.51%. Given OptimizeRx’s stronger consensus rating and higher possible upside, research analysts clearly believe OptimizeRx is more favorable than Open Text.

Valuation and Earnings

This table compares OptimizeRx and Open Text”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OptimizeRx	$92.13 million	1.52	-$18.66 million	N/A	N/A
Open Text	$5.17 billion	1.25	$435.87 million	$1.70	15.18

Open Text has higher revenue and earnings than OptimizeRx.

Risk & Volatility

OptimizeRx has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, Open Text has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.

Summary

OptimizeRx beats Open Text on 7 of the 13 factors compared between the two stocks.

About OptimizeRx

OptimizeRx Corporation, a digital health technology company, enables care-focused engagement between life sciences organizations, healthcare providers, and patients at critical junctures throughout the patient care journey. It offers various tech-enabled marketing solutions through its Artificial Intelligence-generated Dynamic Audience and Activation Platform, which enables customers to execute traditional marketing campaigns on its proprietary digital point-of-care network, as well as dynamic marketing campaigns that optimize audiences in real time to increase the value of treatment information for healthcare professionals and patients in response to clinical care events. The company was founded in 2006 and is based in Waltham, Massachusetts.

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.