Pareteum (NASDAQ:TEUM) and Open Text (NASDAQ:OTEX) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, institutional ownership, earnings, profitability and risk.
Insider and Institutional Ownership
21.9% of Pareteum shares are owned by institutional investors. Comparatively, 66.3% of Open Text shares are owned by institutional investors. 4.0% of Pareteum 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 hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Pareteum has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, Open Text has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500.
This is a summary of recent recommendations and price targets for Pareteum and Open Text, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Pareteum presently has a consensus target price of $7.00, suggesting a potential upside of 143.06%. Open Text has a consensus target price of $47.14, suggesting a potential upside of 24.42%. Given Pareteum’s higher possible upside, equities analysts plainly believe Pareteum is more favorable than Open Text.
This table compares Pareteum and Open Text’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Open Text pays an annual dividend of $0.70 per share and has a dividend yield of 1.8%. Pareteum does not pay a dividend. Open Text pays out 66.0% of its earnings in the form of a dividend. Open Text has increased its dividend for 4 consecutive years.
Valuation and Earnings
This table compares Pareteum and Open Text’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Pareteum||$32.44 million||9.93||-$12.98 million||$0.09||32.00|
|Open Text||$2.87 billion||3.57||$285.50 million||$1.06||35.75|
Open Text has higher revenue and earnings than Pareteum. Pareteum is trading at a lower price-to-earnings ratio than Open Text, indicating that it is currently the more affordable of the two stocks.
Open Text beats Pareteum on 12 of the 16 factors compared between the two stocks.
Pareteum Company Profile
Pareteum Corporation operates a communications cloud services platform in Europe and internationally. Its platform provides mobility, messaging, and security services and applications, with a single-sign-on, application program interface (API), and software development suite. The company's platform hosts integrated IT/back office and core network functionality for mobile network operators, as well as for enterprises to implement and leverage mobile communications solutions on a Software as a Service (Saas), PaaS, or IaaS basis. It also offers operational support system for channel partners with APIs for integration with third party systems, workflows for complex application orchestration, and customer support with branded portals and plug-ins for various other applications. In addition, the company provides software solutions, which layer over disparate fixed, mobile, and IP networks to enable the deployment of converged communication services and applications for enterprise communications and core telecommunications markets; and Wi-Fi access on mobile devices through its SaaS platform. Pareteum Corporation serves the markets of Internet of Things, mobile virtual network operators, smart cities, and application developers. The company was formerly known as Elephant Talk Communications Corp. and changed its name to Pareteum Corporation in November 2016. Pareteum Corporation is based in New York, New York.
Open Text Company Profile
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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