Consensus Cloud Solutions (NASDAQ:CCSI – Get Free Report) and Open Text (NASDAQ:OTEX – Get Free Report) are both technology companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, risk, institutional ownership, valuation, analyst recommendations and dividends.
Valuation and Earnings
This table compares Consensus Cloud Solutions 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 | |
| Consensus Cloud Solutions | $349.70 million | 2.26 | $84.53 million | $4.94 | 8.73 |
| Open Text | $5.25 billion | 1.14 | $643.02 million | $2.58 | 9.63 |
Open Text has higher revenue and earnings than Consensus Cloud Solutions. Consensus Cloud Solutions is trading at a lower price-to-earnings ratio than Open Text, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Consensus Cloud Solutions has a beta of 1.56, meaning that its share price is 56% more volatile than the S&P 500. Comparatively, Open Text has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Consensus Cloud Solutions and Open Text, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Consensus Cloud Solutions | 0 | 1 | 2 | 0 | 2.67 |
| Open Text | 0 | 9 | 3 | 0 | 2.25 |
Consensus Cloud Solutions presently has a consensus target price of $45.00, suggesting a potential upside of 4.29%. Open Text has a consensus target price of $30.72, suggesting a potential upside of 23.63%. Given Open Text’s higher probable upside, analysts plainly believe Open Text is more favorable than Consensus Cloud Solutions.
Profitability
This table compares Consensus Cloud Solutions and Open Text’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Consensus Cloud Solutions | 26.42% | 366.52% | 13.90% |
| Open Text | 12.54% | 25.39% | 7.63% |
Institutional and Insider Ownership
93.9% of Consensus Cloud Solutions shares are held by institutional investors. Comparatively, 70.4% of Open Text shares are held by institutional investors. 3.6% of Consensus Cloud Solutions shares are held by insiders. Comparatively, 10.6% of Open Text shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Summary
Consensus Cloud Solutions beats Open Text on 8 of the 14 factors compared between the two stocks.
About Consensus Cloud Solutions
Consensus Cloud Solutions, Inc., together with its subsidiaries, provides information delivery services with a software-as-a-service platform worldwide. The company offers eFax Corporate, a digital cloud-fax technology; Unite, a single platform that allows the user to choose between various protocols to send and receive healthcare information and can integrate into an existing electronic health record system or stand-alone if no EHR is present. It also offers jsign, an electronic and digital signature solution; Conductor, an interface engine and interoperability platform that provides integration technology; Clarity that transforms unstructured documents into structured actionable data; and eFax, an online faxing solution, as well as other products under the MyFax, MetroFax, Sfax, and SRfax brands. In addition, the company provides ECFax, an Corporate eFax. It serves healthcare, government, financial services, law, and education sectors. Consensus Cloud Solutions, Inc. was incorporated in 2021 and is headquartered in Los Angeles, California.
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.
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