WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

SAP SE ADR generates 628% more annual revenue ($38.19B vs $5.25B). SAP leads profitability with a 20.4% 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 Buy

74

out of 100

Grade: B

Growth: 6.7Profit: 6.5Value: 8.7Quality: 4.5
Piotroski: 7/9Altman Z: 1.05

SAP

Buy

64

out of 100

Grade: C+

Growth: 7.3Profit: 8.5Value: 4.0Quality: 8.0
Piotroski: 6/9Altman Z: 3.11
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

OTEXUndervalued (+81.4%)

Margin of Safety

+81.4%

Fair Value

$130.17

Current Price

$23.06

$107.11 discount

UndervaluedFair: $130.17Overvalued
SAPSignificantly Overvalued (-30.1%)

Margin of Safety

-30.1%

Fair Value

$151.01

Current Price

$206.36

$55.35 premium

UndervaluedFair: $151.01Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

OTEX4 strengths · Avg: 9.5/10
P/E RatioValuation
8.8x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

EPS GrowthGrowth
476.1%10/10

Earnings expanding 476.1% YoY

Operating MarginProfitability
24.1%8/10

Strong operational efficiency at 24.1%

SAP6 strengths · Avg: 9.0/10
Market CapQuality
$248.28B10/10

Mega-cap, among the largest globally

Altman Z-ScoreHealth
3.1110/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
20.4%9/10

Keeps 20 of every $100 in revenue as profit

Debt/EquityHealth
0.229/10

Conservative balance sheet, low leverage

Operating MarginProfitability
27.6%8/10

Strong operational efficiency at 27.6%

EPS GrowthGrowth
30.6%8/10

Earnings expanding 30.6% YoY

Areas to Watch

OTEX3 concerns · Avg: 3.0/10
Revenue GrowthGrowth
2.9%4/10

2.9% revenue growth

Debt/EquityHealth
1.493/10

Elevated debt levels

Altman Z-ScoreHealth
1.052/10

Distress zone — elevated risk

SAP3 concerns · Avg: 3.3/10
PEG RatioValuation
1.644/10

Expensive relative to growth rate

P/E RatioValuation
27.8x4/10

Moderate valuation

Price/BookValuation
64.9x2/10

Trading at 64.9x book value

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 Market Cap, Altman Z-Score, Profit Margin. Profitability is solid with margins at 20.4% and operating margin at 27.6%.

Bear Case : OTEX

The primary concerns for OTEX are Revenue Growth, Debt/Equity, Altman Z-Score.

Bear Case : SAP

The primary concerns for SAP are PEG Ratio, P/E Ratio, Price/Book.

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 1.03 — expect wider price swings.

SAP is growing revenue faster at 9.4% — sustainability is the question.

SAP generates stronger free cash flow (3.0B), providing more financial flexibility.

Bottom Line

OTEX scores higher overall (74/100 vs 64/100). 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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