SS&C Technologies (NASDAQ:SSNC – Get Free Report) and Open Text (NASDAQ:OTEX – Get Free Report) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation and analyst recommendations.
Insider and Institutional Ownership
97.0% of SS&C Technologies shares are owned by institutional investors. Comparatively, 70.4% of Open Text shares are owned by institutional investors. 16.4% of SS&C Technologies 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 hedge funds, large money managers and endowments believe a company is poised for long-term growth.
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Profitability
This table compares SS&C Technologies and Open Text’s net margins, return on equity and return on assets.
Analyst Recommendations
This is a summary of recent recommendations for SS&C Technologies and Open Text, as provided by MarketBeat.com.
SS&C Technologies currently has a consensus price target of $97.38, indicating a potential upside of 9.15%. Open Text has a consensus price target of $33.10, indicating a potential downside of 7.23%. Given SS&C Technologies’ stronger consensus rating and higher probable upside, equities research analysts plainly believe SS&C Technologies is more favorable than Open Text.
Valuation & Earnings
This table compares SS&C Technologies and Open Text”s top-line revenue, earnings per share (EPS) and valuation.
SS&C Technologies has higher revenue and earnings than Open Text. Open Text is trading at a lower price-to-earnings ratio than SS&C Technologies, indicating that it is currently the more affordable of the two stocks.
Dividends
SS&C Technologies pays an annual dividend of $1.08 per share and has a dividend yield of 1.2%. Open Text pays an annual dividend of $1.10 per share and has a dividend yield of 3.1%. SS&C Technologies pays out 33.9% of its earnings in the form of a dividend. Open Text pays out 66.7% 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. SS&C Technologies has increased its dividend for 9 consecutive years.
Volatility and Risk
SS&C Technologies has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500. Comparatively, Open Text has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500.
Summary
SS&C Technologies beats Open Text on 16 of the 18 factors compared between the two stocks.
About SS&C Technologies
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SS&C Technologies Holdings, Inc. engages in the development and provision of software solutions to the financial services and healthcare industries. It operates through the following geographical segments: United States, Europe, Middle East and Africa, Asia Pacific and Japan, Canada, and the Americas, excluding the United States and Canada. Its products include advent genesis, antares, asset allocators, AWD, axys, BANC mall, BRIX, DST vision, evare, lightning, and moxy. The company was founded by William Charles Stone in March 1986 and is headquartered in Windsor, CT.
About Open Text
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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.