WallStSmart

Open Text Corp (OTEX)vsSynopsys Inc (SNPS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Synopsys Inc generates 55% more annual revenue ($8.01B vs $5.18B). SNPS leads profitability with a 13.8% profit margin vs 8.4%. OTEX appears more attractively valued with a PEG of 1.02. OTEX earns a higher WallStSmart Score of 58/100 (C).

OTEX

Buy

58

out of 100

Grade: C

Growth: 4.0Profit: 6.5Value: 8.0Quality: 3.5
Piotroski: 5/9Altman Z: 0.99

SNPS

Hold

47

out of 100

Grade: D+

Growth: 6.7Profit: 5.0Value: 3.0Quality: 4.5
Piotroski: 1/9Altman Z: 1.48
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

OTEXUndervalued (+83.3%)

Margin of Safety

+83.3%

Fair Value

$145.53

Current Price

$22.36

$123.17 discount

UndervaluedFair: $145.53Overvalued

Intrinsic value data unavailable for SNPS.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

OTEX3 strengths · Avg: 8.7/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

P/E RatioValuation
13.1x8/10

Attractively priced relative to earnings

Operating MarginProfitability
23.5%8/10

Strong operational efficiency at 23.5%

SNPS2 strengths · Avg: 9.5/10
Revenue GrowthGrowth
65.5%10/10

Revenue surging 65.5% year-over-year

Market CapQuality
$92.45B9/10

Large-cap with strong market position

Areas to Watch

OTEX4 concerns · Avg: 2.3/10
Debt/EquityHealth
1.633/10

Elevated debt levels

Revenue GrowthGrowth
-0.6%2/10

Revenue declined 0.6%

EPS GrowthGrowth
-23.9%2/10

Earnings declined 23.9%

Altman Z-ScoreHealth
0.992/10

Distress zone — elevated risk

SNPS4 concerns · Avg: 2.5/10
Return on EquityProfitability
5.5%3/10

ROE of 5.5% — below average capital efficiency

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

PEG RatioValuation
3.172/10

Expensive relative to growth rate

P/E RatioValuation
74.3x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : OTEX

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

Bull Case : SNPS

The strongest argument for SNPS centers on Revenue Growth, Market Cap. Revenue growth of 65.5% demonstrates continued momentum.

Bear Case : OTEX

The primary concerns for OTEX are Debt/Equity, Revenue Growth, EPS Growth. Debt-to-equity of 1.63 is elevated, increasing financial risk.

Bear Case : SNPS

The primary concerns for SNPS are Return on Equity, Piotroski F-Score, PEG Ratio. A P/E of 74.3x leaves little room for execution misses.

Key Dynamics to Monitor

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

SNPS carries more volatility with a beta of 1.15 — expect wider price swings.

SNPS is growing revenue faster at 65.5% — sustainability is the question.

SNPS generates stronger free cash flow (822M), providing more financial flexibility.

Bottom Line

OTEX scores higher overall (58/100 vs 47/100). Both earn "Buy" and "Hold" 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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Synopsys Inc

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Synopsys is an American electronic design automation company that focuses on silicon design and verification, silicon intellectual property and software security and quality. Products include logic synthesis, behavioral synthesis, place and route, static timing analysis, formal verification, hardware description language (SystemC, SystemVerilog/Verilog, VHDL) simulators, and transistor-level circuit simulation.

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