Financial Analysis: Healthcare Triangle (NASDAQ:HCTI) & Open Text (NASDAQ:OTEX)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Open Text	8.35%	24.34%	6.60%
Healthcare Triangle	-60.08%	-773.20%	-143.68%

Earnings and Valuation

This table compares Open Text and Healthcare Triangle”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Open Text	$5.77 billion	1.36	$465.09 million	$1.73	17.09
Healthcare Triangle	$16.57 million	0.31	-$12.34 million	($2.18)	-0.41

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

Volatility & Risk

Open Text has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, Healthcare Triangle has a beta of 0.21, suggesting that its stock price is 79% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Open Text and Healthcare Triangle, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Open Text	0	8	3	0	2.27
Healthcare Triangle	0	0	0	0	0.00

Open Text presently has a consensus price target of $35.90, suggesting a potential upside of 21.41%. Given Open Text’s stronger consensus rating and higher possible upside, equities analysts clearly believe Open Text is more favorable than Healthcare Triangle.

Institutional & Insider Ownership

70.4% of Open Text shares are owned by institutional investors. Comparatively, 0.3% of Healthcare Triangle shares are owned by institutional investors. 10.6% of Open Text shares are owned by company insiders. Comparatively, 2.5% of Healthcare Triangle shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Open Text beats Healthcare Triangle on 14 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 Healthcare Triangle

Healthcare Triangle, Inc., a healthcare information technology company, focuses on developing solutions in the sectors of cloud services, data science, and professional and managed services for the electronic health record, and healthcare and life sciences industry. It provides a suite of software, solutions, platforms, and services that enables healthcare and pharma organizations to deliver personalized healthcare, precision medicine, advances in drug discovery, development and efficacy, collaborative research and development, respond to evidence, and accelerate their digital transformation. The company’s software platforms include CloudEz, an enterprise multi-cloud transformation and management platform that enables customers to manage their cloud infrastructure in private, hybrid, and public cloud infrastructures; and DataEz, a cloud-based data analytics and data science platform for the data analytics and data science requirements of life sciences/pharmaceutical and healthcare provider organizations. It also provides Readabl.AI, a Software-as-a-Service solution that uses public cloud artificial intelligence and machine learning to recognize and extract healthcare information from documents, faxes, and narrative reports. In addition, the company offers cloud IT services; and healthcare IT services, such as electronic health records and software implementation, optimization, and extension to community partners, as well as application managed services, and backup and disaster recovery on public cloud. It primarily serves healthcare delivery organizations, healthcare insurance companies, pharmaceutical and life sciences, biotech companies, and medical device manufacturers. The company was incorporated in 2019 and is based in Pleasanton, California. Healthcare Triangle, Inc. is a subsidiary of SecureKloud Technologies, Inc.