Head-To-Head Comparison: Manhattan Associates (NASDAQ:MANH) & Open Text (NASDAQ:OTEX)

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

Institutional & Insider Ownership

70.4% of Open Text shares are owned by institutional investors. Comparatively, 98.5% of Manhattan Associates shares are owned by institutional investors. 10.6% of Open Text shares are owned by insiders. Comparatively, 0.9% of Manhattan Associates shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Open Text has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, Manhattan Associates has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500.

Profitability

This table compares Open Text and Manhattan Associates’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Open Text	8.43%	22.52%	6.72%
Manhattan Associates	20.91%	82.91%	31.38%

Analyst Recommendations

This is a breakdown of recent recommendations for Open Text and Manhattan Associates, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Open Text	1	7	2	0	2.10
Manhattan Associates	1	3	6	0	2.50

Open Text currently has a consensus price target of $32.60, suggesting a potential upside of 2.87%. Manhattan Associates has a consensus price target of $216.6667, suggesting a potential upside of 0.87%. Given Open Text’s higher possible upside, equities research analysts clearly believe Open Text is more favorable than Manhattan Associates.

Earnings and Valuation

This table compares Open Text and Manhattan Associates”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Open Text	$5.17 billion	1.56	$435.87 million	$1.65	19.21
Manhattan Associates	$1.04 billion	12.46	$218.36 million	$3.58	60.00

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

Summary

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

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.

About Manhattan Associates

Manhattan Associates, Inc. develops, sells, deploys, services, and maintains software solutions to manage supply chains, inventory, and omni-channel operations. It offers Warehouse Management Solution for managing goods and information across the distribution centers; Manhattan Active Warehouse Management, a cloud native and version less application for the associate; and Transportation Management Solution for helping shippers navigate their way through the demands and meet customer service expectations at the lowest possible freight costs; Manhattan SCALE, a portfolio of logistics execution solution; and Manhattan Active Omni, which offers order management, store inventory and fulfillment, POS, and customer engagement tools for enterprises and stores. The company also provides inventory optimization and allocation solutions; technology platform including Manhattan Active Platform solutions, a cloud-native product designed to provide version-less product access; maintenance services, which offers on-premises software licensees with software upgrades for additional or improved functionality and technological advances; and professional services, such as solutions planning and implementation, and related consulting services. In addition, it provides training and change management services; and resells computer hardware, radio frequency terminal networks, radio frequency identification chip readers, bar code printers and scanners, and other peripherals. The company offers products through direct sales personnel and partnership agreements with various organizations. It serves retail, consumer goods, food and grocery, logistics service providers, industrial and wholesale, high technology and electronics, life sciences, and government industries. The company operates in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Manhattan Associates, Inc. was founded in 1990 and is headquartered in Atlanta, Georgia.