Open Text (NASDAQ:OTEX) and CleanSpark (NASDAQ:CLSK) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Open Text and CleanSpark, as provided by MarketBeat.
|
Sell Ratings |
Hold Ratings |
Buy Ratings |
Strong Buy Ratings |
Rating Score |
| Open Text |
1 |
3 |
5 |
0 |
2.44 |
| CleanSpark |
0 |
0 |
2 |
0 |
3.00 |
Open Text presently has a consensus target price of $55.71, suggesting a potential upside of 12.03%. CleanSpark has a consensus target price of $47.50, suggesting a potential upside of 160.13%. Given CleanSpark’s stronger consensus rating and higher probable upside, analysts clearly believe CleanSpark is more favorable than Open Text.
Earnings and Valuation
This table compares Open Text and CleanSpark’s top-line revenue, earnings per share and valuation.
|
Gross Revenue |
Price/Sales Ratio |
Net Income |
Earnings Per Share |
Price/Earnings Ratio |
| Open Text |
$3.11 billion |
4.37 |
$234.23 million |
$2.80 |
17.76 |
| CleanSpark |
$10.03 million |
61.83 |
-$23.35 million |
($0.52) |
-35.12 |
Open Text has higher revenue and earnings than CleanSpark. CleanSpark is trading at a lower price-to-earnings ratio than Open Text, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Open Text has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, CleanSpark has a beta of 5.1, suggesting that its stock price is 410% more volatile than the S&P 500.
Insider & Institutional Ownership
64.2% of Open Text shares are held by institutional investors. Comparatively, 21.7% of CleanSpark shares are held by institutional investors. 10.6% of Open Text shares are held by company insiders. Comparatively, 9.0% of CleanSpark shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Open Text and CleanSpark’s net margins, return on equity and return on assets.
|
Net Margins |
Return on Equity |
Return on Assets |
| Open Text |
4.69% |
22.03% |
8.94% |
| CleanSpark |
-97.53% |
-19.32% |
-18.23% |
Summary
Open Text beats CleanSpark on 10 of the 14 factors compared between the two stocks.
About Open Text
Open Text Corporation provides a suite of software products and services. The company offers content services; business network that manages and connects data within the organization; Cyber Resilience, a solution for defending against cyber threats and preparing for business continuity and response in the event of a breach; OpenText security solutions that addresses information security and digital investigations; AI and analytics that leverages structured or unstructured data; and OpenText Information Management software platform that provides multi-level, multi-role, and multi context security information platforms. It also offers digital process automation, which enables organizations to transform into digital data-driven businesses through automation; Customer Experience Management, a set of processes used to track customer interactions throughout the customer journey; and Discovery suite that provides forensics and unstructured data analytics for searching, collecting, and investigating enterprise data to manage legal obligations and risk. In addition, the company offers customer support programs that include access to software upgrades, a knowledge base, discussions, product information, and an online mechanism to post and review trouble tickets. Further, it provides professional services, such as consulting and learning services relating to the implementation, training, and integration of its licensed product offerings, as well as cloud services. The company serves organizations, enterprise companies, mid-market companies, and public sector agencies worldwide. It has strategic partnerships with SAP SE, Microsoft Corporation, Oracle Corporation, Salesforce.com Corporation, Google Cloud, Amazon AWS, Accenture plc, Deloitte Consulting LLP, Tata Consultancy Services, ATOS, ATOS International S.A.S., Capgemini Technology Services SAS, and Cognizant Technology Solutions U.S. Corp. The company was founded in 1991 and is headquartered in Waterloo, Canada.
About CleanSpark
CleanSpark, Inc. provides energy software and control technology solutions worldwide. It offers distributed energy systems that allow customers to design, engineer, communicate, and manage renewable energy generation, storage, and consumption; and microgrids, which comprise generation, energy storage, and smart distribution assets that serve a single or multiple loads connected to the utility grid and separate from the utility grid for commercial, industrial, defense, campus, and residential users. The company’s products include mPulse software suite, a modular platform that provides intelligent control of a microgrid; and microgrid value stream optimizer that offers a robust distributed energy and microgrid system modeling solution. It also provides critical power switchgear and hardware solutions, including parallel switchgear, automatic transfer switches, and related control and circuit protective equipment solutions; technology-based consulting services comprising design, marketing/digital content, engineering and SalesForce development, and strategy services; and distributed energy microgrid system design and engineering, and project consulting services. In addition, the company offers open automated demand response (OpenADR) and other middleware communication protocol software solutions, such as Canvas, an OpenADR virtual top node built for testing and managing virtual end nodes; and Plaid, a software solution that allows internet connected products to add load shifting capabilities into APIs. Further, it owns a gasification technology and process for converting waste and organic materials into synthesis gas, which is used as fuel for power plants, motor vehicles, jets, duel-fuel diesel engines, gas turbines, steam boilers, and as feedstock for the generation of di-methyl ether. The company was formerly known as Stratean Inc. and changed its name to CleanSpark, Inc. in November 2016. CleanSpark, Inc. was incorporated in 1987 and is based in Woods Cross, Utah.
Receive News & Ratings for Open Text Daily – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for Open Text and related companies with MarketBeat.com’s FREE daily email newsletter.
Original Source
