Magic Software Enterprises Ltd. (NASDAQ:MGIC) and Shopify Inc. (NYSE:SHOP), both competing one another are Application Software companies. We will compare their dividends, institutional ownership, analyst recommendations, profitability, risk, earnings and valuation.

Earnings & Valuation

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Magic Software Enterprises Ltd. 278.32M 1.49 19.14M 0.42 18.62
Shopify Inc. 1.07B 18.93 64.55M -0.63 0.00
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Table 1 shows top-line revenue, earnings per share and valuation of the two companies.

Profitability

Table 2 provides us the return on assets, net margins and return on equity of both businesses.

Net Margins Return on Equity Return on Assets
Magic Software Enterprises Ltd. 6.88% 8.8% 5.5%
Shopify Inc. -6.03% -4.4% -4%

Risk & Volatility

Magic Software Enterprises Ltd. is 23.00% less volatile than Standard and Poor’s 500 due to its 0.77 beta. Shopify Inc.’s 40.00% more volatile than Standard and Poor’s 500 which is a result of the 1.4 beta.

Liquidity

3.9 and 3.9 are the respective Current Ratio and a Quick Ratio of Magic Software Enterprises Ltd. Its rival Shopify Inc.’s Current and Quick Ratios are 11.8 and 11.8 respectively. Shopify Inc. has a better chance of clearing its pay short and long-term debts than Magic Software Enterprises Ltd.

Dividends

Magic Software Enterprises Ltd. pays out a $0.28 per share dividend on a yearly basis and it also offers 3.38% dividend yield. No dividend is paid out for Shopify Inc.

Analyst Ratings

In next table is delivered Magic Software Enterprises Ltd. and Shopify Inc.’s ratings and recommendations.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Magic Software Enterprises Ltd. 0 0 0 0.00
Shopify Inc. 0 2 8 2.80

Competitively Shopify Inc. has a consensus target price of $194.44, with potential upside of 5.89%.

Insider & Institutional Ownership

The shares of both Magic Software Enterprises Ltd. and Shopify Inc. are owned by institutional investors at 1.2% and 74.4% respectively. Insiders owned roughly 58.1% of Magic Software Enterprises Ltd.’s shares. On the other hand, insiders owned about 0.35% of Shopify Inc.’s shares.

Performance

Here are the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Magic Software Enterprises Ltd. -3.58% -10.45% -12.36% -4.88% -3.7% -6.89%
Shopify Inc. -0.76% 2.23% 6.59% -5.45% 51.82% 50%

For the past year Magic Software Enterprises Ltd. has -6.89% weaker performance while Shopify Inc. has 50% stronger performance.

Summary

Magic Software Enterprises Ltd. beats Shopify Inc. on 8 of the 13 factors.

Magic Software Enterprises Ltd. provides proprietary application development, business process integration, and vertical software solutions and related professional services in Israel and internationally. The companyÂ’s Software Solutions segment develops, markets, sells, and supports a proprietary and none proprietary application platform, software applications, and business and process integration solutions and related services. Its IT professional Services segment offers IT services in the areas of infrastructure design and delivery, application development, technology planning and implementation services, and communications services and solutions, as well as supplemental outsourcing services. The company offers Magic xpa, a proprietary application platform for developing and deploying business applications; AppBuilder application platform for building, deploying, and maintaining mainframe-grade business applications; and Magic xpi integration platform, a graphical wizard-based code-free solution. It also provides vertical software solutions comprising Clicks, a software solution for healthcare providers; Leap, a software solution for business support systems; Hermes Solution for both hubs and traditional air cargo ground handling operations; HR Pulse, a customized single-tenant software as a service tool that helps organizations to create new human capital management solutions; and MBS Solution, a proprietary system for managing TV broadcast channels. In addition, it provides software maintenance, support, training, and consulting services. It serves oil and gas, telecommunications, financial, healthcare, industrial sectors, as well as public institutions and international agencies. The company was formerly known as Mashov Software Export (1983) Ltd. and changed its name to Magic Software Enterprises Ltd. in 1991. Magic Software Enterprises Ltd. was founded in 1983 and is headquartered in Or Yehuda, Israel.

Shopify Inc. provides a cloud-based multi-channel commerce platform for small and medium-sized businesses in Canada, the United States, the United Kingdom, Australia, and internationally. Its platform provides merchants with a single view of their business and customers in various sales channels, including Web and mobile storefronts, physical retail locations, social media storefronts, and marketplaces; and enables them to manage products and inventory, process orders and payments, ship orders, build customer relationships, and leverage analytics and reporting. The company was formerly known as Jaded Pixel Technologies Inc. and changed its name to Shopify Inc. in November 2011. Shopify Inc. was founded in 2004 and is headquartered in Ottawa, Canada.



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