Financial Comparison: Bridgeline Digital (BLIN) vs. Open Text Corporation (OTEX)

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

Volatility & Risk

Bridgeline Digital has a beta of 0.01, meaning that its share price is 99% less volatile than the S&P 500. Comparatively, Open Text Corporation has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500.

Earnings and Valuation

This table compares Bridgeline Digital and Open Text Corporation’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
Bridgeline Digital	$15.78 million	0.71	-$832,000.00	($1.35)	-1.96
Open Text Corporation	$2.29 billion	3.67	$631.71 million	$4.16	7.68

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

Profitability

This table compares Bridgeline Digital and Open Text Corporation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bridgeline Digital	-29.84%	-9.85%	-6.42%
Open Text Corporation	44.77%	8.92%	4.29%

Institutional & Insider Ownership

30.0% of Bridgeline Digital shares are owned by institutional investors. Comparatively, 67.8% of Open Text Corporation shares are owned by institutional investors. 33.8% of Bridgeline Digital shares are owned by insiders. Comparatively, 10.6% of Open Text Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Open Text Corporation pays an annual dividend of $0.53 per share and has a dividend yield of 1.7%. Bridgeline Digital does not pay a dividend. Open Text Corporation pays out 12.7% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Bridgeline Digital and Open Text Corporation, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bridgeline Digital	0	0	0	0	N/A
Open Text Corporation	0	1	8	0	2.89

Open Text Corporation has a consensus target price of $42.63, indicating a potential upside of 33.41%. Given Open Text Corporation’s higher possible upside, analysts clearly believe Open Text Corporation is more favorable than Bridgeline Digital.

Summary

Open Text Corporation beats Bridgeline Digital on 12 of the 14 factors compared between the two stocks.

About Bridgeline Digital

Bridgeline Digital, Inc. is a digital engagement company. The Company’s iAPPS platform is a Web Engagement Management (WEM) platform that integrates Web Content Management, e-commerce, e-marketing, Social Media management and Web Analytics to help marketers deliver digital experiences that engage and convert their customers across all channels. The iAPPS platform is delivered through a cloud-based Software as a Service (SaaS) multi-tenant business model, which provides customers with deployment providing maintenance, daily technical operation and support, or through a perpetual licensing business model. The iAPPS suite of products includes iAPPS Experience Manager, iAPPS Content Manager, iAPPS Commerce, iAPPS Marketier, iAPPS Analyzer, iAPPSds and iAPPS Social. It offers various services, such as digital engagement services, digital strategy services, usability design and information architecture. It provides shared hosting, dedicated hosting and SaaS hosting for its customers.

About Open Text Corporation

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.