Open Text (NASDAQ:OTEX) & Plum Acquisition Corp. I (NASDAQ:PLMI) Financial Survey

Plum Acquisition Corp. I (NASDAQ:PLMI) and Open Text (NASDAQ:OTEX) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, earnings, profitability, dividends, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

25.9% of Plum Acquisition Corp. I shares are held by institutional investors. Comparatively, 70.4% of Open Text shares are held by institutional investors. 71.9% of Plum Acquisition Corp. I shares are held by company insiders. Comparatively, 10.6% of Open Text shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Plum Acquisition Corp. I and Open Text’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Plum Acquisition Corp. I	N/A	N/A	-$30,000.00	N/A	N/A
Open Text	$4.48 billion	2.11	$150.38 million	$0.47	73.87

Open Text has higher revenue and earnings than Plum Acquisition Corp. I.

Profitability

This table compares Plum Acquisition Corp. I and Open Text’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Plum Acquisition Corp. I	N/A	-17.83%	-0.07%
Open Text	2.24%	22.99%	5.51%

Analyst Recommendations

This is a summary of current recommendations and price targets for Plum Acquisition Corp. I and Open Text, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Plum Acquisition Corp. I	0	0	0	0	N/A
Open Text	0	4	4	0	2.50

Open Text has a consensus price target of $46.25, indicating a potential upside of 33.21%. Given Open Text’s higher possible upside, analysts plainly believe Open Text is more favorable than Plum Acquisition Corp. I.

Volatility & Risk

Plum Acquisition Corp. I has a beta of 0.02, indicating that its stock price is 98% less volatile than the S&P 500. Comparatively, Open Text has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500.

Summary

Open Text beats Plum Acquisition Corp. I on 9 of the 10 factors compared between the two stocks.

About Plum Acquisition Corp. I

Plum Acquisition Corp. I does not have significant operations. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. The company was incorporated in 2021 and is based in San Francisco, California. Plum Acquisition Corp. I operates as a subsidiary of Plum Partners, LLC.

About Open Text

Open Text Corporation provides information management software and solutions. The company offers content services, which includes content collaboration and intelligent capture to records management, collaboration, e-signatures, and archiving; and operates experience cloud platform that provides customer experience and web content management, digital asset management, customer analytics, AI and insights, e-discovery, digital fax, omnichannel communications, secure messaging, and voice of customer, as well as customer journey, testing, and segmentation. It also provides cybersecurity cloud solutions to protect, prevent, detect, respond and quickly recover from threats across endpoints, network, applications, IT infrastructure and data, AI-led threat intelligence; and to protect critical information and processes through threat intelligence, forensics, identity, encryption, and cloud-based application security. In addition, the company offers business network cloud for digital supply chains and secure e-commerce ecosystems including digitize and automate procure-to-pay and order-to-cash processes; IT operations management cloud for automation and advancement of IT support and asset management; and analytics & AI cloud solutions that offers artificial intelligence with practical usage to provide organizations with actionable insights and better automation, such as visualizations, advanced natural language processing and understanding, and integrated computer vision capabilities. In addition, it provides application automation cloud, developers cloud, and services. Further, it has strategic partnerships with SAP SE, Google Cloud, Amazon AWS, Microsoft Corporation, Oracle Corporation, Salesforce.com Corporation, DXC Technology Company, Accenture plc, Capgemini Technology Services SAS, Deloitte Consulting LLP, Hewlett Packard Enterprises, and Tata Consultancy Services. Open Text Corporation was incorporated in 1991 and is headquartered in Waterloo, Canada.