Waystar (NASDAQ:WAY) versus Open Text (NASDAQ:OTEX) Financial Analysis

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

Valuation and Earnings

This table compares Waystar and Open Text”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Waystar	$863.29 million	5.38	-$51.33 million	N/A	N/A
Open Text	$5.77 billion	1.58	$465.09 million	$0.62	54.42

Open Text has higher revenue and earnings than Waystar.

Profitability

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

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Waystar and Open Text, as provided by MarketBeat.

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

Waystar presently has a consensus price target of $29.40, suggesting a potential upside of 5.45%. Open Text has a consensus price target of $38.80, suggesting a potential upside of 15.00%. Given Open Text’s higher possible upside, analysts plainly believe Open Text is more favorable than Waystar.

Institutional and Insider Ownership

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

Summary

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

About Waystar

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

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.