Critical Survey: Open Text Corporation (OTEX) and Constant Contact (CTCT)
Open Text Corporation (NASDAQ: OTEX) and Constant Contact (NASDAQ:CTCT) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.
This table compares Open Text Corporation and Constant Contact’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%|
Earnings & Valuation
This table compares Open Text Corporation and Constant Contact’s top-line revenue, earnings per share 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 Constant Contact.
Institutional & Insider Ownership
66.3% of Open Text Corporation shares are held by institutional investors. 10.6% of Open Text Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This is a summary of recent ratings and recommmendations for Open Text Corporation and Constant Contact, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Open Text Corporation||0||1||7||0||2.88|
Open Text Corporation currently has a consensus price target of $42.63, suggesting a potential upside of 34.63%. Given Open Text Corporation’s higher probable upside, research analysts clearly believe Open Text Corporation is more favorable than Constant Contact.
Open Text Corporation pays an annual dividend of $0.53 per share and has a dividend yield of 1.7%. Constant Contact 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 Constant Contact on 7 of the 10 factors compared between the two stocks.
About Open Text Corporation
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.
About Constant Contact
Constant Contact, Inc. (Constant Contact) is a provider of online marketing tools for small organizations, including small businesses, associations and non-profits. The Company’s tools include Email Marketing, EventSpot, Social Campaigns, SaveLocal, SinglePlatform and Survey. It also provides Constant Contact Toolkit, which is an online marketing platform. Toolkit serves the small organizations to find and engage with customers across various marketing channels, including email, social, mobile and Web. Toolkit is available to customers in three packages: Email, Email Plus and Personal Marketer. Its Email offering is for the customers of email marketing product. Its Email Plus includes email marketing product, as well as access to its other marketing offerings, including running promotions and offers, managing events online, conducting surveys and getting feedback. Its Personal Marketer package includes various Toolkit offerings in Email Plus.
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