Magic Software Enterprises (NASDAQ:MGIC – Get Free Report) and MARA (NASDAQ:MARA – Get Free Report) are both technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.
Risk and Volatility
Magic Software Enterprises has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, MARA has a beta of 5.32, meaning that its share price is 432% more volatile than the S&P 500.
Insider & Institutional Ownership
24.7% of Magic Software Enterprises shares are held by institutional investors. Comparatively, 44.5% of MARA shares are held by institutional investors. 4.5% of Magic Software Enterprises shares are held by insiders. Comparatively, 1.0% of MARA shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Magic Software Enterprises | 6.61% | 16.28% | 8.96% |
| MARA | -429.71% | -26.05% | -12.73% |
Valuation and Earnings
This table compares Magic Software Enterprises and MARA”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Magic Software Enterprises | $603.22 million | 1.41 | $36.88 million | $0.81 | 21.46 |
| MARA | $907.09 million | 4.83 | -$1.31 billion | ($9.16) | -1.24 |
Magic Software Enterprises has higher earnings, but lower revenue than MARA. MARA is trading at a lower price-to-earnings ratio than Magic Software Enterprises, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and target prices for Magic Software Enterprises and MARA, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Magic Software Enterprises | 0 | 2 | 0 | 0 | 2.00 |
| MARA | 3 | 1 | 8 | 0 | 2.42 |
MARA has a consensus price target of $19.20, suggesting a potential upside of 69.46%. Given MARA’s stronger consensus rating and higher possible upside, analysts clearly believe MARA is more favorable than Magic Software Enterprises.
About Magic Software Enterprises
Magic Software Enterprises Ltd. provides proprietary application development, vertical software solutions, business process integration, information technologies (IT) outsourcing software services, and cloud-based services in Israel and internationally. Its Software Services segment develops, markets, sells, and supports application platform, software applications, and business and process integration solutions and related services. The company’s IT Professional Services segment offers IT services in the areas of infrastructure design and delivery, application development, technology planning and implementation services, communications services and solutions, and supplemental outsourcing services. It also offers proprietary application platforms, such as Magic xpa for developing and deploying business applications; AppBuilder for building, deploying, and maintaining business applications; Magic xpi for application integration; Magic xpi cloud native; FactoryEye for virtualization of production data; Magic Data Management and Analytics Platform for data management; and Magic SmartUX for cross-platform mobile business applications. The company also provides vertical software solutions comprising Clicks, a software solution for healthcare providers; Leap, a software solution for business support systems; Hermes Cargo, a packaged software solution for managing air cargo ground handling; HR Pulse, a single-tenant software as a service tool; MBS Solution, a system for managing TV broadcast management; Nativ, a system for management of rehabilitation centers; and Mobisale, a system for sales and distribution field activities for consumer goods manufacturers and wholesalers. In addition, It provides software maintenance, support, training, and consulting services. The company was formerly known as Mashov Software Export (1983) Ltd. and changed its name to Magic Software Enterprises Ltd. in 1991. The company was incorporated in 1983 and is headquartered in Or Yehuda, Israel.
About MARA
MARA Holdings, Inc. operates as a digital asset technology company that mines digital assets with a focus on the bitcoin ecosystem in United States. The company was formerly known as Marathon Digital Holdings, Inc. and changed its name to MARA Holdings, Inc. in August 2024. MARA Holdings, Inc. was incorporated in 2010 and is headquartered in Fort Lauderdale, Florida.
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