WallStSmart

Open Text Corp (OTEX)vsSAP SE ADR (SAP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

SAP SE ADR generates 617% more annual revenue ($37.34B vs $5.21B). SAP leads profitability with a 19.6% 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-).

OTEX

Strong Buy

70

out of 100

Grade: B-

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

SAP

Buy

59

out of 100

Grade: C

Growth: 6.0Profit: 8.5Value: 4.7Quality: 6.8
Piotroski: 6/9Altman Z: 3.11
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

OTEXUndervalued (+81.8%)

Margin of Safety

+81.8%

Fair Value

$133.20

Current Price

$23.12

$110.08 discount

UndervaluedFair: $133.20Overvalued
SAPSignificantly Overvalued (-34.7%)

Margin of Safety

-34.7%

Fair Value

$145.83

Current Price

$184.77

$38.94 premium

UndervaluedFair: $145.83Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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%

SAP4 strengths · Avg: 9.3/10
Operating MarginProfitability
30.0%10/10

Strong operational efficiency at 30.0%

Altman Z-ScoreHealth
3.1110/10

Safe zone — low bankruptcy risk

Market CapQuality
$192.92B9/10

Large-cap with strong market position

Free Cash FlowQuality
$3.27B8/10

Generating 3.3B in free cash flow

Areas to Watch

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

SAP0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : SAP

The strongest argument for SAP centers on Operating Margin, Altman Z-Score, Market Cap. Profitability is solid with margins at 19.6% and operating margin at 30.0%. PEG of 1.44 suggests the stock is reasonably priced for its growth.

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.

Bear Case : SAP

No major red flags identified for SAP, but monitor valuation.

Key Dynamics to Monitor

OTEX profiles as a value stock while SAP is a mature play — different risk/reward profiles.

OTEX carries more volatility with a beta of 1.05 — expect wider price swings.

SAP is growing revenue faster at 6.0% — sustainability is the question.

SAP generates stronger free cash flow (3.3B), providing more financial flexibility.

Bottom Line

OTEX scores higher overall (70/100 vs 59/100). Both earn "Strong Buy" and "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.

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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SAP SE ADR

TECHNOLOGY · SOFTWARE - APPLICATION · USA

SAP SE is a global enterprise application software company. The company is headquartered in Walldorf, Germany.

Visit Website →

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