Arbe Robotics (NASDAQ:ARBE – Get Free Report) and Open Text (NASDAQ:OTEX – Get Free Report) are both business services companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.
Risk and Volatility
Arbe Robotics has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500. Comparatively, Open Text has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500.
Earnings and Valuation
This table compares Arbe Robotics and Open Text”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Arbe Robotics | $768,000.00 | 181.83 | -$43.50 million | ($0.74) | -2.09 |
| Open Text | $5.22 billion | 1.40 | $465.09 million | $2.45 | 11.48 |
Open Text has higher revenue and earnings than Arbe Robotics. Arbe Robotics is trading at a lower price-to-earnings ratio than Open Text, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
33.4% of Arbe Robotics shares are held by institutional investors. Comparatively, 70.4% of Open Text shares are held by institutional investors. 53.5% of Arbe Robotics shares are held by insiders. Comparatively, 10.6% of Open Text shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Arbe Robotics and Open Text’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Arbe Robotics | -4,567.91% | -102.87% | -57.53% |
| Open Text | 12.21% | 23.23% | 6.67% |
Analyst Ratings
This is a breakdown of current ratings for Arbe Robotics and Open Text, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Arbe Robotics | 0 | 1 | 1 | 0 | 2.50 |
| Open Text | 1 | 8 | 2 | 0 | 2.09 |
Arbe Robotics presently has a consensus price target of $2.38, suggesting a potential upside of 53.23%. Open Text has a consensus price target of $32.30, suggesting a potential upside of 14.82%. Given Arbe Robotics’ stronger consensus rating and higher possible upside, analysts plainly believe Arbe Robotics is more favorable than Open Text.
Summary
Open Text beats Arbe Robotics on 10 of the 14 factors compared between the two stocks.
About Arbe Robotics
Arbe Robotics Ltd., a semiconductor company, provides 4D imaging radar solutions for tier 1 automotive suppliers and automotive manufacturers in China, Hong Kong, Sweden, Germany, the United States, Israel, and internationally. It offers 4D imaging radar chipset solutions that address the core issues that have caused autonomous vehicle and autopilot accidents, such as detecting stationary objects, identifying vulnerable road users, operation at poor lighting conditions, and eliminating false alarms without radar ambiguities. The company was founded in 2015 and is headquartered in Tel Aviv-Yafo, Israel.
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.
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