WallStSmart

Open Text Corp (OTEX)vsShopify Inc (SHOP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Shopify Inc generates 123% more annual revenue ($11.56B vs $5.18B). SHOP leads profitability with a 10.6% 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: 7.3Quality: 5.0
Piotroski: 5/9Altman Z: 0.99

SHOP

Hold

48

out of 100

Grade: D+

Growth: 7.3Profit: 7.0Value: 2.0Quality: 8.5
Piotroski: 3/9Altman Z: 4.73
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
SHOPSignificantly Overvalued (-1729.9%)

Margin of Safety

-1729.9%

Fair Value

$6.39

Current Price

$118.42

$112.03 premium

UndervaluedFair: $6.39Overvalued

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%

SHOP5 strengths · Avg: 9.4/10
Revenue GrowthGrowth
30.6%10/10

Revenue surging 30.6% year-over-year

Debt/EquityHealth
0.0910/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.7310/10

Safe zone — low bankruptcy risk

Market CapQuality
$151.59B9/10

Large-cap with strong market position

Operating MarginProfitability
20.3%8/10

Strong operational efficiency at 20.3%

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

SHOP4 concerns · Avg: 2.8/10
Price/BookValuation
11.5x4/10

Trading at 11.5x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
9.562/10

Expensive relative to growth rate

P/E RatioValuation
123.6x2/10

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 : SHOP

The strongest argument for SHOP centers on Revenue Growth, Debt/Equity, Altman Z-Score. Revenue growth of 30.6% 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 : SHOP

The primary concerns for SHOP are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 123.6x 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 2.90 — expect wider price swings.

SHOP is growing revenue faster at 30.6% — sustainability is the question.

SHOP generates stronger free cash flow (715M), providing more financial flexibility.

Bottom Line

OTEX scores higher overall (58/100 vs 48/100). 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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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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