Open Text Corp (OTEX)vsShopify Inc (SHOP)
OTEX
Open Text Corp
$23.06
+1.99%
TECHNOLOGY · Cap: $5.49B
SHOP
Shopify Inc
$128.79
+1.73%
TECHNOLOGY · Cap: $188.28B
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
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+81.4%
Fair Value
$130.17
Current Price
$23.06
$107.11 discount
Margin of Safety
+22.9%
Fair Value
$151.66
Current Price
$128.79
$22.87 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 476.1% YoY
Strong operational efficiency at 24.1%
Revenue surging 33.7% year-over-year
Earnings expanding 68.1% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Areas to Watch
2.9% revenue growth
Elevated debt levels
Distress zone — elevated risk
Trading at 13.1x book value
Weak financial health signals
Expensive relative to growth rate
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull 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 : SHOP
The strongest argument for SHOP centers on Revenue Growth, EPS Growth, Debt/Equity. 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 Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 98.0x 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 2.62 — 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 62/100). SHOP offers better value entry with a 22.9% 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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