Financial Comparison: SolarWinds (SWI) versus Open Text Corporation (OTEX)
SolarWinds (NYSE: SWI) and Open Text Corporation (NASDAQ:OTEX) are both mid-cap technology companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.
Valuation and Earnings
This table compares SolarWinds and Open Text Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Open Text Corporation||$2.29 billion||3.64||$631.71 million||$4.16||7.61|
Open Text Corporation has higher revenue and earnings than SolarWinds.
This is a breakdown of recent ratings and recommmendations for SolarWinds and Open Text Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Open Text Corporation||0||1||7||0||2.88|
Open Text Corporation has a consensus price target of $42.63, suggesting a potential upside of 34.63%. Given Open Text Corporation’s higher possible upside, analysts plainly believe Open Text Corporation is more favorable than SolarWinds.
Institutional and Insider Ownership
66.3% of Open Text Corporation shares are held by institutional investors. 10.6% of Open Text Corporation 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.
This table compares SolarWinds and Open Text Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Open Text Corporation||44.77%||8.92%||4.29%|
Open Text Corporation pays an annual dividend of $0.53 per share and has a dividend yield of 1.7%. SolarWinds does not pay a dividend. Open Text Corporation pays out 12.7% of its earnings in the form of a dividend.
Open Text Corporation beats SolarWinds on 7 of the 11 factors compared between the two stocks.
SolarWinds Company Profile
SolarWinds, Inc. (SolarWinds) is a holding company. The Company designs, develops, markets, sells and supports enterprise-class information technology (IT), infrastructure management software to IT and DevOps professionals in organizations of all sizes. Its products categories include network management, which is used to monitor and manage the performance of network infrastructure; systems management, which is used to monitor and manage the performance of applications, physical and virtual servers, storage and databases; MSP, which is used by managed service providers to monitor and manage the IT infrastructure of their end clients, SMBs, and cloud, its cloud-based products, which are used to monitor and manage applications and application infrastructure. Its customers include small- and mid-size businesses, enterprises, MSPs, and local, state and federal Government entities.
Open Text Corporation Company Profile
Open Text Corporation provides a platform and suite of software products and services that assist organizations in finding, utilizing, and sharing business information from any device. The Company designs, develops, markets and sells Enterprise Information Management (EIM) software and solutions. Its EIM offerings include Enterprise Content Management (ECM), Business Process Management (BPM), Customer Experience Management (CEM), Business Network, Discovery and Analytics. Its software and services allow organizations to manage the information that flows into, out of, and throughout the enterprise as part of daily operations. Its solutions incorporate collaborative and mobile technologies and are delivered for on-premises deployment, as well as through cloud, hybrid and managed hosted services models. In addition, the Company provides solutions that facilitate the exchange of information and transactions that occur between supply chain participants.
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