Contrasting Open Text (NASDAQ:OTEX) and Arbe Robotics (NASDAQ:ARBE)

Open Text (NASDAQ:OTEX) and Arbe Robotics (NASDAQ:ARBE) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, dividends, valuation and profitability.

Institutional & Insider Ownership

70.4% of Open Text shares are held by institutional investors. Comparatively, 33.4% of Arbe Robotics shares are held by institutional investors. 10.6% of Open Text shares are held by company insiders. Comparatively, 53.5% of Arbe Robotics 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.

Risk and Volatility

Open Text has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Arbe Robotics has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500.

Earnings and Valuation

This table compares Open Text and Arbe Robotics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Open Text	$5.22 billion	1.39	$465.09 million	$2.45	11.41
Arbe Robotics	$671,000.00	208.12	-$43.50 million	($0.66)	-2.35

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.

Analyst Ratings

This is a breakdown of current ratings and price targets for Open Text and Arbe Robotics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Open Text	1	8	2	0	2.09
Arbe Robotics	0	1	1	0	2.50

Open Text presently has a consensus target price of $32.30, indicating a potential upside of 15.56%. Arbe Robotics has a consensus target price of $2.38, indicating a potential upside of 53.23%. Given Arbe Robotics’ stronger consensus rating and higher possible upside, analysts plainly believe Arbe Robotics is more favorable than Open Text.

Profitability

This table compares Open Text and Arbe Robotics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Open Text	12.21%	23.23%	6.67%
Arbe Robotics	-4,567.91%	-102.87%	-57.53%

Summary

Open Text beats Arbe Robotics on 10 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 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.