ARB IOT Group (NASDAQ:ARBB) & Open Text (NASDAQ:OTEX) Financial Analysis

ARB IOT Group (NASDAQ:ARBB) and Open Text (NASDAQ:OTEX) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Institutional and Insider Ownership

14.8% of ARB IOT Group shares are owned by institutional investors. Comparatively, 70.4% of Open Text shares are owned by institutional investors. 10.6% of Open Text shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares ARB IOT Group and Open Text’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ARB IOT Group	N/A	N/A	N/A
Open Text	8.35%	24.34%	6.60%

Valuation and Earnings

This table compares ARB IOT Group 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
ARB IOT Group	$12.32 million	1.09	-$11.65 million	N/A	N/A
Open Text	$5.61 billion	1.44	$465.09 million	$1.73	17.59

Open Text has higher revenue and earnings than ARB IOT Group.

Analyst Ratings

This is a breakdown of current ratings and target prices for ARB IOT Group and Open Text, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ARB IOT Group	0	0	0	0	0.00
Open Text	0	8	3	0	2.27

Open Text has a consensus target price of $35.90, indicating a potential upside of 17.98%. Given Open Text’s stronger consensus rating and higher probable upside, analysts clearly believe Open Text is more favorable than ARB IOT Group.

Volatility and Risk

ARB IOT Group has a beta of 2.25, suggesting that its stock price is 125% more volatile than the S&P 500. Comparatively, Open Text has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.

Summary

Open Text beats ARB IOT Group on 11 of the 12 factors compared between the two stocks.

About ARB IOT Group

ARB IOT Group Limited, through its subsidiaries, provides Internet of Things (IoT) system solutions, and system integration and support services in Malaysia. It offers IoT smart home and building solutions, such as design, procurement, and provision of smart home products and devices; integration services; and electrical wire installation and home data network setup for homeowners, as well as provides smart building solutions, including design, procurement, installation, testing, pre-commissioning and commissioning of various IoT systems, solutions, and devices; and integration of automated systems for smart buildings, including installation of wire and wireless, and mechatronic works for property developers and contractors. The company offers IoT smart agriculture solutions, such as designing the layout of the smart farm for the application and integration of IoT in farming and hydroponics, which includes the procurement of sensors and surveillance cameras, as well as other hardware for farm; designing of software to enable transfer of data from the smart farm to a cloud server, which can then be accessed remotely through smart devices; installing, testing, and commissioning of the hardware and software; and after-sales services comprising data analytics and periodic maintenance services. In addition, it provides IoT system development solutions, including procuring, supplying, and delivering industrial building systems for construction projects; and IoT gadget distribution solutions comprising supply chain and distribution of smart phones, accessories, and ICT and IoT products, as well as provides shipping tracking and status updates, customer care line, online chat support, digital marketing, pre-installation, and warranty services. The company was incorporated in 2022 and is based in Kuala Lumpur, Malaysia. ARB IOT Group Limited is a subsidiary of ARB Berhad.

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.