Head to Head Analysis: Agilysys (AGYS) versus Open Text (OTEX)
Agilysys (NASDAQ: OTEX) and Open Text (NASDAQ:OTEX) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.
Earnings and Valuation
This table compares Agilysys and Open Text’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Agilysys||$127.36 million||3.02||-$8.35 million||($0.37)||-44.14|
|Open Text||$2.82 billion||3.67||$242.22 million||$0.91||42.44|
This is a breakdown of current ratings and recommmendations for Agilysys and Open Text, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Agilysys presently has a consensus target price of $22.00, indicating a potential upside of 34.72%. Open Text has a consensus target price of $44.60, indicating a potential upside of 15.48%. Given Agilysys’ stronger consensus rating and higher possible upside, analysts plainly believe Agilysys is more favorable than Open Text.
This table compares Agilysys and Open Text’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Agilysys has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500. Comparatively, Open Text has a beta of 0.29, meaning that its stock price is 71% less volatile than the S&P 500.
Insider and Institutional Ownership
86.3% of Agilysys shares are owned by institutional investors. Comparatively, 68.0% of Open Text shares are owned by institutional investors. 26.8% of Agilysys shares are owned by insiders. Comparatively, 10.6% of Open Text shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Open Text pays an annual dividend of $0.61 per share and has a dividend yield of 1.6%. Agilysys does not pay a dividend. Open Text pays out 67.0% of its earnings in the form of a dividend. Open Text has raised its dividend for 3 consecutive years.
Open Text beats Agilysys on 10 of the 16 factors compared between the two stocks.
Agilysys, Inc., together with its subsidiaries, operates as a developer and marketer of hardware and software products and services to the hospitality industry in North America, Europe, the Asia-Pacific, and India. The company offers point-of-sale, property management, reservation and table management, inventory and procurement, workforce management, analytics, document management, and mobile and wireless solutions to streamline operations, and enhance efficiency and guest experience. It also provides support and maintenance of software and hardware products, and subscription services; and professional services. Agilysys, Inc. serves various sectors, including gaming; hotels, resorts, and cruise; foodservice management; and restaurants, universities, stadia, and healthcare. The company was formerly known as Pioneer-Standard Electronics, Inc. and changed its name to Agilysys, Inc. in 2003. Agilysys, Inc. was founded in 1963 and is headquartered in Alpharetta, Georgia.
About Open Text
Open Text Corporation provides a suite of software products and services. The company offers content services; digital process automation, which enables organizations to transform into digital and data-driven businesses through automation; and discovery suite that provides forensics and unstructured data analytics for searching, collecting, and investigating enterprise data to manage legal obligations and risk. It also provides business network solutions comprising business-to-business integration services, such as secure mail, large file transfer, fax, and electronic data interchange within a single platform; analytics solutions; and forensic security and automated cyber risk management software service. In addition, the company provides customer support programs that include access to software upgrades, a knowledge base, discussions, product information, and an online mechanism to post and review trouble tickets. Further, it offers professional services, such as consulting and learning services relating for the implementation, training, and integration of its licensed product offerings into the customers' systems; and cloud services that allow its customers to make use of its OpenText software, services, and content over Internet enabled networks. The company serves organizations, mid-market companies, and government agencies worldwide. It has strategic partnerships with SAP SE, Microsoft Corporation, Oracle Corporation, Salesforce.com Corporation, Accenture plc, Deloitte Consulting LLP, and others. Open Text Corporation was founded in 1991 and is headquartered in Waterloo, Canada.
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