Luxoft (NYSE: LXFT) and Open Text (NASDAQ:OTEX) are both technology companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.
This is a summary of recent ratings and recommmendations for Luxoft and Open Text, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
This table compares Luxoft and Open Text’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Luxoft 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|
|Luxoft||$785.56 million||1.86||$62.63 million||$1.73||25.12|
|Open Text||$2.29 billion||4.07||$1.03 billion||$0.71||49.45|
Open Text has higher revenue and earnings than Luxoft. Luxoft is trading at a lower price-to-earnings ratio than Open Text, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Luxoft has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500. Comparatively, Open Text has a beta of 0.35, meaning that its stock price is 65% less volatile than the S&P 500.
Open Text pays an annual dividend of $0.53 per share and has a dividend yield of 1.5%. Luxoft does not pay a dividend. Open Text pays out 74.6% of its earnings in the form of a dividend.
Institutional and Insider Ownership
52.2% of Luxoft shares are owned by institutional investors. Comparatively, 67.4% of Open Text shares are owned by institutional investors. 10.6% of Open Text shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Open Text beats Luxoft on 10 of the 16 factors compared between the two stocks.
Luxoft Company Profile
Luxoft Holding, Inc., is a provider of software development services and information technology (IT) solutions to a global client base consisting primarily of large multinational corporations. The Company’s software development services consist of custom software development and support, product engineering and testing, and technology consulting. The Company’s solutions are based on its proprietary products and platforms that directly impact its clients’ business outcomes and efficiently deliver continuous innovation. The Company develops its solutions and delivers its services from 34 cities with delivery centers worldwide. Its products and platforms include Horizon, SuperCloud, Twister, iStockTrack, TEORA, Populus, AllView, CVNAR and Retail Engagement Suite (RES) in Internet of Things (IoT) space.
Open Text Company Profile
Open Text Corporation provides a platform and suite of software products and services that assist organizations in finding, utilizing, and sharing business information from any device. The Company designs, develops, markets and sells Enterprise Information Management (EIM) software and solutions. Its EIM offerings include Enterprise Content Management (ECM), Business Process Management (BPM), Customer Experience Management (CEM), Business Network, Discovery and Analytics. Its software and services allow organizations to manage the information that flows into, out of, and throughout the enterprise as part of daily operations. Its solutions incorporate collaborative and mobile technologies and are delivered for on-premises deployment, as well as through cloud, hybrid and managed hosted services models. In addition, the Company provides solutions that facilitate the exchange of information and transactions that occur between supply chain participants.
Receive News & Ratings for Luxoft Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Luxoft and related companies with MarketBeat.com's FREE daily email newsletter.