Head to Head Review: Open Text (NASDAQ:OTEX) vs. Kyndryl (NYSE:KD)

Kyndryl (NYSE:KDGet Free Report) and Open Text (NASDAQ:OTEXGet Free Report) are both mid-cap business services companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Risk & Volatility

Kyndryl has a beta of 1.63, suggesting that its stock price is 63% more volatile than the S&P 500. Comparatively, Open Text has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Kyndryl and Open Text, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kyndryl 0 0 6 0 3.00
Open Text 0 8 3 0 2.27

Kyndryl presently has a consensus price target of $33.00, suggesting a potential downside of 5.23%. Open Text has a consensus price target of $35.90, suggesting a potential upside of 17.36%. Given Open Text’s higher possible upside, analysts clearly believe Open Text is more favorable than Kyndryl.

Valuation and Earnings

This table compares Kyndryl and Open Text”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kyndryl $15.30 billion 0.53 -$340.00 million ($0.39) -89.28
Open Text $5.77 billion 1.41 $465.09 million $1.73 17.68

Open Text has lower revenue, but higher earnings than Kyndryl. Kyndryl is trading at a lower price-to-earnings ratio than Open Text, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

71.5% of Kyndryl shares are held by institutional investors. Comparatively, 70.4% of Open Text shares are held by institutional investors. 1.0% of Kyndryl 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 endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Kyndryl and Open Text’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kyndryl -0.58% -4.09% -0.46%
Open Text 8.35% 24.34% 6.60%

Summary

Open Text beats Kyndryl on 9 of the 14 factors compared between the two stocks.

About Kyndryl

(Get Free Report)

Kyndryl Holdings, Inc. operates as a technology services company and IT infrastructure services provider worldwide. The company offers cloud services; core enterprise and zCloud services; application, data, and artificial intelligence services; digital workplace services; security and resiliency services; and network services and edge services. It serves financial, communications, retail and travel, and automotive industries. The company was incorporated in 2020 and is headquartered in New York, New York.

About Open Text

(Get Free Report)

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.

Receive News & Ratings for Kyndryl Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Kyndryl and related companies with MarketBeat.com's FREE daily email newsletter.