Open Text (OTEX) Competitors

Open Text (NASDAQ:OTEX) and Zscaler (NASDAQ:ZS) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, earnings, media sentiment, analyst recommendations, community ranking, valuation, profitability, dividends and risk.

Do analysts prefer OTEX or ZS?

Open Text presently has a consensus price target of $35.27, suggesting a potential upside of 25.82%. Zscaler has a consensus price target of $224.84, suggesting a potential upside of 18.11%. Given Open Text's higher probable upside, analysts clearly believe Open Text is more favorable than Zscaler.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Open Text	0 Sell rating(s)	9 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.25
Zscaler	0 Sell rating(s)	11 Hold rating(s)	23 Buy rating(s)	0 Strong Buy rating(s)	2.68

Do institutionals and insiders hold more shares of OTEX or ZS?

70.4% of Open Text shares are owned by institutional investors. Comparatively, 46.5% of Zscaler shares are owned by institutional investors. 10.6% of Open Text shares are owned by company insiders. Comparatively, 18.1% of Zscaler shares are owned by company 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.

Does the MarketBeat Community favor OTEX or ZS?

Open Text received 69 more outperform votes than Zscaler when rated by MarketBeat users. Likewise, 66.74% of users gave Open Text an outperform vote while only 60.69% of users gave Zscaler an outperform vote.

Company	Underperform	Outperform
Open Text	Outperform Votes 580 66.74%	Underperform Votes 289 33.26%
Zscaler	Outperform Votes 511 60.69%	Underperform Votes 331 39.31%

Which has more volatility and risk, OTEX or ZS?

Open Text has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500. Comparatively, Zscaler has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.

Which has preferable earnings and valuation, OTEX or ZS?

Open Text has higher revenue and earnings than Zscaler. Zscaler 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	$5.77B	1.28	$465.09M	$1.73	16.20
Zscaler	$2.30B	12.71	-$57.71M	-$0.25	-761.46

Is OTEX or ZS more profitable?

Open Text has a net margin of 8.35% compared to Zscaler's net margin of -1.58%. Open Text's return on equity of 24.34% beat Zscaler's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Open Text	8.35%	24.34%	6.60%
Zscaler	-1.58%	-0.75%	-0.20%

Does the media favor OTEX or ZS?

In the previous week, Zscaler had 15 more articles in the media than Open Text. MarketBeat recorded 24 mentions for Zscaler and 9 mentions for Open Text. Zscaler's average media sentiment score of 0.60 beat Open Text's score of 0.55 indicating that Zscaler is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Open Text	4 Very Positive mention(s)	1 Positive mention(s)	2 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive
Zscaler	15 Very Positive mention(s)	3 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	1 Very Negative mention(s)	Positive

Summary

Open Text beats Zscaler on 12 of the 18 factors compared between the two stocks.