Open Text (OTEX) Competitors

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

Does the media favor OTEX or SPSC?

In the previous week, SPS Commerce had 12 more articles in the media than Open Text. MarketBeat recorded 15 mentions for SPS Commerce and 3 mentions for Open Text. Open Text's average media sentiment score of 1.75 beat SPS Commerce's score of 0.45 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	3 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive
SPS Commerce	5 Very Positive mention(s)	2 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral

Is OTEX or SPSC more profitable?

SPS Commerce has a net margin of 12.23% compared to Open Text's net margin of 2.85%. Open Text's return on equity of 24.45% beat SPS Commerce's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Open Text	2.85%	24.45%	5.96%
SPS Commerce	12.23%	12.06%	9.76%

Which has stronger valuation and earnings, OTEX or SPSC?

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.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Open Text	$4.48B	1.85	$150.38M	$0.62	49.16
SPS Commerce	$536.91M	13.52	$65.82M	$1.83	107.15

Does the MarketBeat Community prefer OTEX or SPSC?

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.

Company	Underperform	Outperform
Open Text	Outperform Votes 571 67.57%	Underperform Votes 274 32.43%
SPS Commerce	Outperform Votes 629 73.83%	Underperform Votes 223 26.17%

Do analysts recommend OTEX or SPSC?

Open Text presently has a consensus target price of $42.25, indicating a potential upside of 38.62%. SPS Commerce has a consensus target price of $200.25, indicating a potential upside of 2.12%. Given Open Text's higher probable upside, equities research analysts clearly believe Open Text is more favorable than SPS Commerce.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Open Text	0 Sell rating(s)	6 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.45
SPS Commerce	0 Sell rating(s)	2 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	2.75

Which has more volatility & risk, OTEX or SPSC?

Open Text has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, SPS Commerce has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.

Do institutionals and insiders believe in OTEX or SPSC?

70.4% of Open Text shares are held by institutional investors. Comparatively, 99.0% of SPS Commerce shares are held by institutional investors. 10.6% of Open Text shares are held by insiders. Comparatively, 1.0% of SPS Commerce shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

SPS Commerce beats Open Text on 11 of the 18 factors compared between the two stocks.