Open Text (NASDAQ:OTEX) vs. Dassault Systemes (OTCMKTS:DASTY) Head to Head Contrast

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

Valuation and Earnings

This table compares Open Text and Dassault Systemes”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Open Text	$5.17 billion	1.92	$435.87 million	$1.65	23.76
Dassault Systemes	$6.72 billion	6.98	$1.30 billion	$0.92	38.04

Dassault Systemes has higher revenue and earnings than Open Text. Open Text is trading at a lower price-to-earnings ratio than Dassault Systemes, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Open Text and Dassault Systemes, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Open Text	1	9	3	0	2.15
Dassault Systemes	0	1	0	2	3.33

Open Text presently has a consensus target price of $38.08, indicating a potential downside of 2.85%. Given Open Text’s higher probable upside, research analysts clearly believe Open Text is more favorable than Dassault Systemes.

Institutional & Insider Ownership

70.4% of Open Text shares are owned by institutional investors. Comparatively, 0.0% of Dassault Systemes shares are owned by institutional investors. 10.6% of Open Text shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Open Text and Dassault Systemes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Open Text	8.43%	22.52%	6.72%
Dassault Systemes	17.93%	16.91%	9.76%

Volatility and Risk

Open Text has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, Dassault Systemes has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.

Dividends

Open Text pays an annual dividend of $1.10 per share and has a dividend yield of 2.8%. Dassault Systemes pays an annual dividend of $0.22 per share and has a dividend yield of 0.6%. Open Text pays out 66.7% of its earnings in the form of a dividend. Dassault Systemes pays out 23.9% 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.

Summary

Dassault Systemes beats Open Text on 9 of the 17 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 Dassault Systemes

Dassault Systèmes SE provides software solutions and services worldwide. It offers SOLIDWORKS provides easy-to-use 2D and 3D product development solutions accessible to any business; CATIA, an engineering and design software for product 3D computer-aided design; GEOVIA for intersection of natural resources, infrastructure, and urban planning; and BIOVIA that develops chemicals, biologics, and materials experiences. The company provides SIMULIA that delivers realistic simulation applications; DELMIA, which enables global industrial operations; 3DVIA that provides 3D space planning solutions; and ENOVIA that enables to plan and track the definition of success for customer. In addition, it offers Centric PLM, a product lifecycle management software solution; 3DEXCITE, a real-time 3D visualization software; NETVIBES, which enables organizations to gather, align, and enrich big data; 3DEXPERIENCE platform that provides organizations a holistic and real-time view of their business activities and ecosystem, as well as connecting people, ideas, data, and solutions together in a single environment; and MEDIDATA, a clinical research study software that provides evidences and insights to pharmaceutical, biotech, medical device, and diagnostic companies, as well as academic researchers. The company distributes its products through direct and indirect sales channels. It primarily serves companies in the transportation and mobility; industrial equipment; aerospace and defense; high-tech; life sciences and healthcare; infrastructure, energy, and materials; home and lifestyle; architecture, engineering, and construction; cities, and public services; consumer packaged goods and retail; marine and offshore; and business services. Dassault Systèmes SE was incorporated in 1981 and is headquartered in Vélizy-Villacoublay, France.