WallStSmart

Oracle Corporation (ORCL)vsOpen Text Corp (OTEX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Oracle Corporation generates 1130% more annual revenue ($64.08B vs $5.21B). ORCL leads profitability with a 25.3% profit margin vs 9.9%. OTEX appears more attractively valued with a PEG of 1.02. OTEX earns a higher WallStSmart Score of 70/100 (B-).

ORCL

Strong Buy

69

out of 100

Grade: B-

Growth: 8.0Profit: 9.0Value: 4.3Quality: 3.0
Piotroski: 2/9Altman Z: 0.59

OTEX

Strong Buy

70

out of 100

Grade: B-

Growth: 7.3Profit: 6.5Value: 8.7Quality: 3.5
Piotroski: 4/9Altman Z: 0.97
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ORCL.

OTEXUndervalued (+81.8%)

Margin of Safety

+81.8%

Fair Value

$133.20

Current Price

$23.12

$110.08 discount

UndervaluedFair: $133.20Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ORCL6 strengths · Avg: 9.2/10
Market CapQuality
$703.42B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
42.1%10/10

Every $100 of equity generates 42 in profit

Operating MarginProfitability
32.7%10/10

Strong operational efficiency at 32.7%

Profit MarginProfitability
25.3%9/10

Keeps 25 of every $100 in revenue as profit

Revenue GrowthGrowth
21.7%8/10

Revenue surging 21.7% year-over-year

EPS GrowthGrowth
24.5%8/10

Earnings expanding 24.5% YoY

OTEX4 strengths · Avg: 9.5/10
P/E RatioValuation
10.8x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

EPS GrowthGrowth
99.0%10/10

Earnings expanding 99.0% YoY

Operating MarginProfitability
21.4%8/10

Strong operational efficiency at 21.4%

Areas to Watch

ORCL4 concerns · Avg: 3.3/10
PEG RatioValuation
1.574/10

Expensive relative to growth rate

Price/BookValuation
18.3x4/10

Trading at 18.3x book value

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
44.0x2/10

Premium valuation, high expectations priced in

OTEX3 concerns · Avg: 3.0/10
Revenue GrowthGrowth
2.2%4/10

2.2% revenue growth

Debt/EquityHealth
1.623/10

Elevated debt levels

Altman Z-ScoreHealth
0.972/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ORCL

The strongest argument for ORCL centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 25.3% and operating margin at 32.7%. Revenue growth of 21.7% demonstrates continued momentum.

Bull Case : OTEX

The strongest argument for OTEX centers on P/E Ratio, Price/Book, EPS Growth. PEG of 1.02 suggests the stock is reasonably priced for its growth.

Bear Case : ORCL

The primary concerns for ORCL are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 44.0x leaves little room for execution misses. Debt-to-equity of 4.21 is elevated, increasing financial risk.

Bear Case : OTEX

The primary concerns for OTEX are Revenue Growth, Debt/Equity, Altman Z-Score. Debt-to-equity of 1.62 is elevated, increasing financial risk.

Key Dynamics to Monitor

ORCL profiles as a growth stock while OTEX is a value play — different risk/reward profiles.

ORCL carries more volatility with a beta of 1.54 — expect wider price swings.

ORCL is growing revenue faster at 21.7% — sustainability is the question.

OTEX generates stronger free cash flow (301M), providing more financial flexibility.

Bottom Line

OTEX scores higher overall (70/100 vs 69/100). Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Oracle Corporation

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Oracle is an American multinational computer technology corporation headquartered in Austin, Texas. The company was formerly headquartered in Redwood Shores, California until December 2020 when it moved its headquarters to Texas. The company sells database software and technology, cloud engineered systems, and enterprise software products, particularly its own brands of database management systems.

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Open Text Corp

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Open Text Corporation offers a suite of software products and services. The company is headquartered in Waterloo, Canada.

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