WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

SAP SE ADR generates 610% more annual revenue ($36.80B vs $5.18B). SAP leads profitability with a 19.5% profit margin vs 8.4%. SAP appears more attractively valued with a PEG of 0.79. SAP earns a higher WallStSmart Score of 58/100 (C).

OTEX

Buy

58

out of 100

Grade: C

Growth: 4.0Profit: 6.5Value: 7.3Quality: 5.0
Piotroski: 5/9Altman Z: 0.99

SAP

Buy

58

out of 100

Grade: C

Growth: 5.3Profit: 8.5Value: 7.3Quality: 8.0
Piotroski: 6/9Altman Z: 3.09
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

OTEXSignificantly Overvalued (-108.6%)

Margin of Safety

-108.6%

Fair Value

$11.63

Current Price

$22.08

$10.45 premium

UndervaluedFair: $11.63Overvalued
SAPSignificantly Overvalued (-88.8%)

Margin of Safety

-88.8%

Fair Value

$104.04

Current Price

$168.95

$64.91 premium

UndervaluedFair: $104.04Overvalued

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
12.9x8/10

Attractively priced relative to earnings

Operating MarginProfitability
23.5%8/10

Strong operational efficiency at 23.5%

SAP6 strengths · Avg: 8.8/10
Market CapQuality
$217.55B10/10

Mega-cap, among the largest globally

Altman Z-ScoreHealth
3.0910/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.189/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.798/10

Growing faster than its price suggests

Operating MarginProfitability
29.2%8/10

Strong operational efficiency at 29.2%

Free Cash FlowQuality
$1.09B8/10

Generating 1.1B in free cash flow

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

SAP2 concerns · Avg: 4.0/10
P/E RatioValuation
26.3x4/10

Moderate valuation

Revenue GrowthGrowth
3.3%4/10

3.3% revenue growth

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 : SAP

The strongest argument for SAP centers on Market Cap, Altman Z-Score, Debt/Equity. Profitability is solid with margins at 19.5% and operating margin at 29.2%. PEG of 0.79 suggests the stock is reasonably priced for its growth.

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 : SAP

The primary concerns for SAP are P/E Ratio, Revenue Growth.

Key Dynamics to Monitor

OTEX carries more volatility with a beta of 1.08 — expect wider price swings.

SAP is growing revenue faster at 3.3% — sustainability is the question.

SAP generates stronger free cash flow (1.1B), providing more financial flexibility.

Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

OTEX scores higher overall (58/100 vs 58/100). Both earn "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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