Head-To-Head Comparison: Open Text (NASDAQ:OTEX) vs. Waystar (NASDAQ:WAY)

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

Earnings & Valuation

This table compares Open Text and Waystar”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Open Text	$5.77 billion	1.58	$465.09 million	$0.62	54.53
Waystar	$791.01 million	5.87	-$51.33 million	N/A	N/A

Open Text has higher revenue and earnings than Waystar.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Open Text	8.06%	25.00%	6.44%
Waystar	N/A	N/A	N/A

Insider & Institutional Ownership

70.4% of Open Text shares are owned by institutional investors. 10.6% of Open Text shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Open Text and Waystar, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Open Text	0	8	4	0	2.33
Waystar	0	0	11	0	3.00

Open Text presently has a consensus target price of $38.80, suggesting a potential upside of 14.76%. Waystar has a consensus target price of $29.40, suggesting a potential upside of 5.45%. Given Open Text’s higher possible upside, equities research analysts plainly believe Open Text is more favorable than Waystar.

Summary

Open Text beats Waystar on 8 of the 11 factors compared between the two stocks.

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.

About Waystar

Waystar Holding Corp. is a software company which provide healthcare payments. Waystar Holding Corp. is based in LEHI, Utah.