Open Text Corp (OTEX)vsShopify Inc (SHOP)
OTEX
Open Text Corp
$27.13
-0.33%
TECHNOLOGY · Cap: $6.17B
SHOP
Shopify Inc
$168.22
+1.45%
TECHNOLOGY · Cap: $215.16B
Smart Verdict
WallStSmart Research — data-driven comparison
Shopify Inc generates 153% more annual revenue ($13.27B vs $5.25B). SHOP leads profitability with a 14.5% profit margin vs 12.3%. OTEX appears more attractively valued with a PEG of 1.02. OTEX earns a higher WallStSmart Score of 74/100 (B).
OTEX
Strong Buy74
out of 100
Grade: B
SHOP
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+81.1%
Fair Value
$128.28
Current Price
$27.13
$101.15 discount
Margin of Safety
+22.4%
Fair Value
$150.73
Current Price
$168.22
$17.49 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Earnings expanding 476.1% YoY
Reasonable price relative to book value
Strong operational efficiency at 24.1%
Mega-cap, among the largest globally
Revenue surging 33.7% year-over-year
Earnings expanding 68.1% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Areas to Watch
2.9% revenue growth
Elevated debt levels
Distress zone — elevated risk
Expensive relative to growth rate
Trading at 17.1x book value
Weak financial health signals
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : OTEX
The strongest argument for OTEX centers on P/E Ratio, EPS Growth, Price/Book. PEG of 1.02 suggests the stock is reasonably priced for its growth.
Bull Case : SHOP
The strongest argument for SHOP centers on Market Cap, Revenue Growth, EPS Growth. Revenue growth of 33.7% demonstrates continued momentum.
Bear Case : OTEX
The primary concerns for OTEX are Revenue Growth, Debt/Equity, Altman Z-Score.
Bear Case : SHOP
The primary concerns for SHOP are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 112.0x leaves little room for execution misses.
Key Dynamics to Monitor
OTEX profiles as a value stock while SHOP is a growth play — different risk/reward profiles.
SHOP carries more volatility with a beta of 2.63 — expect wider price swings.
SHOP is growing revenue faster at 33.7% — sustainability is the question.
OTEX generates stronger free cash flow (808M), providing more financial flexibility.
Bottom Line
OTEX scores higher overall (74/100 vs 63/100). SHOP offers better value entry with a 22.4% margin of safety. 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.
Visit Website →Shopify Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Shopify Inc., a commerce company, offers a commerce and service platform in Canada, the United States, the United Kingdom, Australia, Latin America, and internationally. The company is headquartered in Ottawa, Canada.
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