Open Text (OTEX) Competitors

Open Text (NASDAQ:OTEX) and Parsons (NYSE:PSN) are both mid-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, community ranking, valuation, analyst recommendations, media sentiment, dividends, profitability and risk.

Is OTEX or PSN more profitable?

Parsons has a net margin of 2.96% compared to Open Text's net margin of 2.24%. Open Text's return on equity of 22.99% beat Parsons' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Open Text	2.24%	22.99%	5.51%
Parsons	2.96%	10.32%	5.04%

Does the media favor OTEX or PSN?

In the previous week, Parsons had 14 more articles in the media than Open Text. MarketBeat recorded 22 mentions for Parsons and 8 mentions for Open Text. Open Text's average media sentiment score of 1.28 beat Parsons' score of 0.25 indicating that Open Text is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Open Text	4 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Parsons	2 Very Positive mention(s)	2 Positive mention(s)	14 Neutral mention(s)	4 Negative mention(s)	0 Very Negative mention(s)	Neutral

Does the MarketBeat Community favor OTEX or PSN?

Open Text received 465 more outperform votes than Parsons when rated by MarketBeat users. Likewise, 67.87% of users gave Open Text an outperform vote while only 56.42% of users gave Parsons an outperform vote.

Company	Underperform	Outperform
Open Text	Outperform Votes 566 67.87%	Underperform Votes 268 32.13%
Parsons	Outperform Votes 101 56.42%	Underperform Votes 78 43.58%

Do institutionals & insiders believe in OTEX or PSN?

70.4% of Open Text shares are held by institutional investors. Comparatively, 98.0% of Parsons shares are held by institutional investors. 10.6% of Open Text shares are held by insiders. Comparatively, 56.0% of Parsons shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Which has more risk & volatility, OTEX or PSN?

Open Text has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500. Comparatively, Parsons has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.

Do analysts rate OTEX or PSN?

Open Text currently has a consensus target price of $46.25, indicating a potential upside of 29.62%. Parsons has a consensus target price of $79.00, indicating a potential downside of 0.92%. Given Open Text's higher possible upside, equities analysts clearly believe Open Text is more favorable than Parsons.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Open Text	0 Sell rating(s)	4 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.50
Parsons	0 Sell rating(s)	1 Hold rating(s)	8 Buy rating(s)	0 Strong Buy rating(s)	2.89

Which has better valuation & earnings, OTEX or PSN?

Parsons has lower revenue, but higher earnings than Open Text. Parsons is trading at a lower price-to-earnings ratio than Open Text, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Open Text	$5.70B	1.71	$150.38M	$0.47	75.91
Parsons	$5.44B	1.55	$161.15M	$1.42	56.15

Summary

Open Text beats Parsons on 10 of the 18 factors compared between the two stocks.