Open Text Corp (OTEX)vsSynopsys Inc (SNPS)
OTEX
Open Text Corp
$22.36
-0.58%
TECHNOLOGY · Cap: $5.69B
SNPS
Synopsys Inc
$482.60
+0.29%
TECHNOLOGY · Cap: $92.45B
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
Buy58
out of 100
Grade: C
SNPS
Hold47
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+83.3%
Fair Value
$145.53
Current Price
$22.36
$123.17 discount
Intrinsic value data unavailable for SNPS.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Attractively priced relative to earnings
Strong operational efficiency at 23.5%
Revenue surging 65.5% year-over-year
Large-cap with strong market position
Areas to Watch
Elevated debt levels
Revenue declined 0.6%
Earnings declined 23.9%
Distress zone — elevated risk
ROE of 5.5% — below average capital efficiency
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 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.
Visit Website →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.
Visit Website →Compare with Other SOFTWARE - APPLICATION Stocks
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