USData (OTCMKTS:USDC) and Open Text (NASDAQ:OTEX) Head-To-Head Review

USData (OTCMKTS:USDC) and Open Text (NASDAQ:OTEX) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and target prices for USData and Open Text, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
USData	0	0	0	0	0.00
Open Text	0	11	3	0	2.21

Open Text has a consensus target price of $35.33, suggesting a potential upside of 50.42%. Given Open Text’s stronger consensus rating and higher possible upside, analysts plainly believe Open Text is more favorable than USData.

Volatility & Risk

USData has a beta of 0.11, indicating that its share price is 89% less volatile than the S&P 500. Comparatively, Open Text has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500.

Insider and Institutional Ownership

70.4% of Open Text shares are owned by institutional investors. 0.6% of USData shares are owned by company insiders. Comparatively, 10.6% of Open Text shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
USData	N/A	N/A	N/A
Open Text	8.42%	23.60%	6.94%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
USData	N/A	N/A	N/A	N/A	N/A
Open Text	$5.17 billion	1.10	$435.87 million	$1.70	13.82

Open Text has higher revenue and earnings than USData.

Summary

Open Text beats USData on 10 of the 10 factors compared between the two stocks.

About USData

USDATA Corp. operates as an independent, global supplier of industrial automation software tools, applications, and consulting services designed to provide businesses with the knowledge and control needed to perfect the products they produce and the processes they manage. USDATA Corp. develops, markets, and supports component-based software products for customers requiring enterprise-wide, open solutions for the industrial automation markets. These software products provide customers real-time computer applications that enable interactive, dynamic, and graphical interfaces to industrial operations. These applications collect, consolidate, and communicate information about an automated process, typically drawn from complex operating sources or from multiple sites throughout an enterprise; and enable the user to interact with and control critical processes. The real-time information provided by its products is intended to enable customers to reduce operating costs, improve product quality, and increase overall throughput and productivity. USDATA’s FactoryLink is a process knowledge and control solution where as its Xfactory is a product knowledge and control software product. It serves customers in a variety of industries, including chemical, oil and gas, food, beverage, automotive, aerospace, telecommunications, electronics, transportation, and other industries. These customers are located in the United States, Europe, Canada, Latin America, and Asia Pacific. The company sells its products and services to end customers and systems integrators through distributors, original equipment manufacturer relationships, and direct sales. USDATA Corp. was founded in 1974 and is based in Richardson, Texas.

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.