Open Text (OTEX) Competitors

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

Do analysts recommend PEGA or OTEX?

Pegasystems presently has a consensus price target of $85.90, indicating a potential downside of 1.16%. Open Text has a consensus price target of $35.90, indicating a potential upside of 24.35%. Given Open Text's higher probable upside, analysts clearly believe Open Text is more favorable than Pegasystems.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pegasystems	0 Sell rating(s)	3 Hold rating(s)	8 Buy rating(s)	0 Strong Buy rating(s)	2.73
Open Text	0 Sell rating(s)	8 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.27

Does the MarketBeat Community prefer PEGA or OTEX?

Open Text received 86 more outperform votes than Pegasystems when rated by MarketBeat users. Likewise, 66.63% of users gave Open Text an outperform vote while only 60.05% of users gave Pegasystems an outperform vote.

Company	Underperform	Outperform
Pegasystems	Outperform Votes 487 60.05%	Underperform Votes 324 39.95%
Open Text	Outperform Votes 573 66.63%	Underperform Votes 287 33.37%

Is PEGA or OTEX a better dividend stock?

Pegasystems pays an annual dividend of $0.12 per share and has a dividend yield of 0.1%. Open Text pays an annual dividend of $1.05 per share and has a dividend yield of 3.6%. Pegasystems pays out 8.8% of its earnings in the form of a dividend. Open Text pays out 60.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Which has more risk & volatility, PEGA or OTEX?

Pegasystems has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Open Text has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500.

Is PEGA or OTEX more profitable?

Open Text has a net margin of 8.35% compared to Pegasystems' net margin of 8.29%. Pegasystems' return on equity of 37.83% beat Open Text's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Pegasystems	8.29%	37.83%	10.18%
Open Text	8.35%	24.34%	6.60%

Do insiders & institutionals believe in PEGA or OTEX?

46.9% of Pegasystems shares are held by institutional investors. Comparatively, 70.4% of Open Text shares are held by institutional investors. 50.1% of Pegasystems shares are held by company insiders. Comparatively, 10.6% of Open Text shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Does the media favor PEGA or OTEX?

In the previous week, Open Text had 4 more articles in the media than Pegasystems. MarketBeat recorded 9 mentions for Open Text and 5 mentions for Pegasystems. Pegasystems' average media sentiment score of 0.83 beat Open Text's score of 0.47 indicating that Pegasystems is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Pegasystems	2 Very Positive mention(s)	1 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Open Text	2 Very Positive mention(s)	1 Positive mention(s)	6 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral

Which has better valuation and earnings, PEGA or OTEX?

Open Text has higher revenue and earnings than Pegasystems. Open Text is trading at a lower price-to-earnings ratio than Pegasystems, 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
Pegasystems	$1.43B	5.20	$67.81M	$1.37	63.44
Open Text	$5.77B	1.33	$465.09M	$1.73	16.69

Summary

Open Text beats Pegasystems on 11 of the 20 factors compared between the two stocks.