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MSFT vs OTEX

MSFT
Microsoft Corporation
BULLISH
Price
$374.33
Market Cap
$2.78T
Sector
Technology
AI Confidence
85%
OTEX
Open Text Corporation
NEUTRAL
Price
$23.12
Market Cap
$5.88B
Sector
Technology
AI Confidence
80%

Valuation

P/E Ratio
MSFT
23.42
OTEX
12.99
Forward P/E
MSFT
19.86
OTEX
5.25
P/B Ratio
MSFT
7.11
OTEX
1.42
P/S Ratio
MSFT
9.11
OTEX
1.14
EV/EBITDA
MSFT
16.05
OTEX
7.32

Profitability

Gross Margin
MSFT
68.59%
OTEX
76.23%
Operating Margin
MSFT
47.09%
OTEX
23.49%
Profit Margin
MSFT
39.04%
OTEX
8.42%
ROE
MSFT
34.39%
OTEX
10.55%
ROA
MSFT
14.86%
OTEX
4.87%

Growth

Revenue Growth
MSFT
16.7%
OTEX
-0.6%
Earnings Growth
MSFT
59.8%
OTEX
-23.9%

Financial Health

Debt/Equity
MSFT
0.32
OTEX
1.63
Current Ratio
MSFT
1.39
OTEX
0.94
Quick Ratio
MSFT
1.24
OTEX
0.82

Dividends

Dividend Yield
MSFT
0.97%
OTEX
4.89%
Payout Ratio
MSFT
21.28%
OTEX
62.87%

AI Verdict

MSFT BULLISH

Microsoft exhibits strong fundamental health with a Piotroski F-Score of 7/9, indicating robust financial stability. While the stock is currently experiencing a severe technical downtrend (0/100) and significant 6-month price depreciation (-28.6%), the current price of $374.33 sits well below the growth-based intrinsic value of $471.41 and the analyst target of $587.31. Exceptional earnings growth (59.8% YoY) and high operating margins (47.09%) suggest that the current price correction presents a value opportunity despite bearish insider sentiment.

Strengths
Strong financial health evidenced by a Piotroski F-Score of 7/9
Exceptional profitability with a 39.04% profit margin and 47.09% operating margin
Robust earnings growth (59.8% YoY) and consistent history of beating estimates
Risks
Severe short-term technical bearishness (0/100 trend score)
Bearish insider activity with $32.64M in net sales over the last 6 months
High Price-to-Book ratio (7.11) indicating a premium over book value
OTEX NEUTRAL

OTEX presents a classic value trap profile: fundamentally cheap but lacking growth catalysts. The Piotroski F-Score of 5/9 indicates stable financial health, and the stock currently trades below its Graham Number ($25.5), suggesting a defensive margin of safety. However, this is offset by alarming growth metrics, including a -23.90% YoY earnings decline and a technical trend score of 0/100. While the dividend yield is attractive, the combination of high debt (D/E 1.63) and poor liquidity (Current Ratio 0.94) warrants caution.

Strengths
Strong Gross Margins (76.23%) indicating high product value
Attractive Dividend Yield of 4.89% with a sustainable payout ratio
Very low Forward P/E (5.25) suggesting significant undervaluation relative to earnings
Risks
Negative YoY Earnings Growth (-23.90%) and stagnant revenue growth
Weak liquidity position with Current Ratio (0.94) and Quick Ratio (0.82) below 1.0
High leverage with a Debt/Equity ratio of 1.63

Compare Another Pair

MSFT vs OTEX: Head-to-Head Comparison

This page compares Microsoft Corporation (MSFT) and Open Text Corporation (OTEX) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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