Reviewing Pony AI (NASDAQ:PONY) & Open Text (NASDAQ:OTEX)

Pony AI (NASDAQ:PONY) and Open Text (NASDAQ:OTEX) are both mid-cap transportation companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.

Earnings & Valuation

This table compares Pony AI and Open Text”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pony AI	N/A	N/A	N/A	N/A	N/A
Open Text	$5.41 billion	1.31	$465.09 million	$2.46	10.91

Open Text has higher revenue and earnings than Pony AI.

Profitability

This table compares Pony AI and Open Text’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pony AI	N/A	N/A	N/A
Open Text	12.21%	23.23%	6.67%

Insider & Institutional Ownership

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

Analyst Ratings

This is a summary of current recommendations for Pony AI and Open Text, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pony AI	0	0	3	0	3.00
Open Text	0	9	3	0	2.25

Pony AI presently has a consensus target price of $19.20, suggesting a potential downside of 18.68%. Open Text has a consensus target price of $35.18, suggesting a potential upside of 31.13%. Given Open Text’s higher probable upside, analysts clearly believe Open Text is more favorable than Pony AI.

Summary

Open Text beats Pony AI on 7 of the 8 factors compared between the two stocks.

About Pony AI

Pony AI Inc., through its subsidiaries, engages in the autonomous mobility principally in the People’s Republic of China and the United States. The company provides robotruck services, such as transportation services to the logistics platforms. Pony AI Inc. is based in Guangzhou, the People’s Republic of China.

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.