Open Text (OTEX) Competitors

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

Which has more risk & volatility, SPSC or OTEX?

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

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

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

Do analysts recommend SPSC or OTEX?

SPS Commerce currently has a consensus target price of $200.25, suggesting a potential upside of 6.46%. Open Text has a consensus target price of $42.25, suggesting a potential upside of 44.44%. Given SPS Commerce's higher possible upside, analysts plainly believe Open Text is more favorable than SPS Commerce.

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

Is SPSC or OTEX more profitable?

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

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

Does the MarketBeat Community prefer SPSC or OTEX?

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

Which has better valuation and earnings, SPSC or OTEX?

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
SPS Commerce	$536.91M	12.97	$65.82M	$1.83	102.78
Open Text	$4.48B	1.78	$150.38M	$0.62	47.18

Does the media prefer SPSC or OTEX?

In the previous week, SPS Commerce had 6 more articles in the media than Open Text. MarketBeat recorded 13 mentions for SPS Commerce and 7 mentions for Open Text. SPS Commerce's average media sentiment score of 1.28 beat Open Text's score of 0.69 indicating that Open Text is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
SPS Commerce	7 Very Positive mention(s)	1 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Open Text	4 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Summary

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