Analyzing ZIM (OTCMKTS:ZIMCF) and Open Text (NASDAQ:OTEX)

ZIM (OTCMKTS:ZIMCF) and Open Text (NASDAQ:OTEX) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.

Valuation & Earnings

This table compares ZIM and Open Text”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZIM	N/A	N/A	N/A	N/A	N/A
Open Text	$5.17 billion	1.05	$435.87 million	$2.05	10.96

Open Text has higher revenue and earnings than ZIM.

Insider and Institutional Ownership

70.4% of Open Text shares are owned by institutional investors. 70.7% of ZIM shares are owned by company insiders. Comparatively, 10.6% of Open Text shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares ZIM and Open Text’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ZIM	N/A	N/A	N/A
Open Text	9.91%	24.77%	7.27%

Analyst Recommendations

This is a summary of current ratings and price targets for ZIM and Open Text, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZIM	0	0	0	0	0.00
Open Text	0	10	4	0	2.29

Open Text has a consensus target price of $33.67, indicating a potential upside of 49.83%. Given Open Text’s stronger consensus rating and higher probable upside, analysts plainly believe Open Text is more favorable than ZIM.

Volatility and Risk

ZIM has a beta of -0.24, indicating that its share price is 124% less volatile than the S&P 500. Comparatively, Open Text has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500.

Summary

Open Text beats ZIM on 9 of the 10 factors compared between the two stocks.

About ZIM

ZIM Corporation provides software products and services for the database and mobile markets in the United States, Brazil, Canada, Singapore, and Austria. The company operates in two segments, Mobile and Enterprise Software. It develops and sells ZIM integrated development environment (IDE) software, an enterprise software for use in the design, development, and management of information databases and mission critical applications. The company’s ZIM IDE software provides an IDE for Microsoft Windows, UNIX, and Linux computer operating systems. Its products are used to develop database applications in various industries, including finance, insurance, marketing, human resource, information, and records management. The company also provides migration services and management products; and short message services. ZIM Corporation was founded in 1997 and is headquartered in Ottawa, Canada.

About Open Text

Open Text Corporation provides information management software and solutions. The company offers content services, which includes content collaboration and intelligent capture to records management, collaboration, e-signatures, and archiving; and operates experience cloud platform that provides customer experience and web content management, digital asset management, customer analytics, AI and insights, e-discovery, digital fax, omnichannel communications, secure messaging, and voice of customer, as well as customer journey, testing, and segmentation. It also provides cybersecurity cloud solutions to protect, prevent, detect, respond and quickly recover from threats across endpoints, network, applications, IT infrastructure and data, AI-led threat intelligence; and to protect critical information and processes through threat intelligence, forensics, identity, encryption, and cloud-based application security. In addition, the company offers business network cloud for digital supply chains and secure e-commerce ecosystems including digitize and automate procure-to-pay and order-to-cash processes; IT operations management cloud for automation and advancement of IT support and asset management; and analytics & AI cloud solutions that offers artificial intelligence with practical usage to provide organizations with actionable insights and better automation, such as visualizations, advanced natural language processing and understanding, and integrated computer vision capabilities. In addition, it provides application automation cloud, developers cloud, and services. Further, it has strategic partnerships with SAP SE, Google Cloud, Amazon AWS, Microsoft Corporation, Oracle Corporation, Salesforce.com Corporation, DXC Technology Company, Accenture plc, Capgemini Technology Services SAS, Deloitte Consulting LLP, Hewlett Packard Enterprises, and Tata Consultancy Services. Open Text Corporation was incorporated in 1991 and is headquartered in Waterloo, Canada.