Magic Software Enterprises (NASDAQ:MGIC) and Manhattan Associates (NASDAQ:MANH) Head-To-Head Survey

Magic Software Enterprises (NASDAQ:MGIC) and Manhattan Associates (NASDAQ:MANH) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Profitability

This table compares Magic Software Enterprises and Manhattan Associates’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Magic Software Enterprises	6.61%	16.28%	8.96%
Manhattan Associates	20.34%	75.61%	28.35%

Insider & Institutional Ownership

24.7% of Magic Software Enterprises shares are held by institutional investors. Comparatively, 98.5% of Manhattan Associates shares are held by institutional investors. 4.5% of Magic Software Enterprises shares are held by insiders. Comparatively, 0.9% of Manhattan Associates shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Magic Software Enterprises and Manhattan Associates”s top-line 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
Manhattan Associates	$1.08 billion	7.39	$219.95 million	$3.60	37.08

Manhattan Associates has higher revenue and earnings than Magic Software Enterprises. Magic Software Enterprises is trading at a lower price-to-earnings ratio than Manhattan Associates, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Magic Software Enterprises has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Manhattan Associates has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Magic Software Enterprises and Manhattan Associates, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magic Software Enterprises	0	2	1	0	2.33
Manhattan Associates	0	5	8	0	2.62

Magic Software Enterprises presently has a consensus price target of $18.00, indicating a potential upside of 3.57%. Manhattan Associates has a consensus price target of $220.36, indicating a potential upside of 65.07%. Given Manhattan Associates’ stronger consensus rating and higher probable upside, analysts clearly believe Manhattan Associates is more favorable than Magic Software Enterprises.

Summary

Manhattan Associates beats Magic Software Enterprises on 13 of the 14 factors compared between the two stocks.

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 Manhattan Associates

Manhattan Associates, Inc. develops, sells, deploys, services, and maintains software solutions to manage supply chains, inventory, and omni-channel operations. It offers Warehouse Management Solution for managing goods and information across the distribution centers; Manhattan Active Warehouse Management, a cloud native and version less application for the associate; and Transportation Management Solution for helping shippers navigate their way through the demands and meet customer service expectations at the lowest possible freight costs; Manhattan SCALE, a portfolio of logistics execution solution; and Manhattan Active Omni, which offers order management, store inventory and fulfillment, POS, and customer engagement tools for enterprises and stores. The company also provides inventory optimization and allocation solutions; technology platform including Manhattan Active Platform solutions, a cloud-native product designed to provide version-less product access; maintenance services, which offers on-premises software licensees with software upgrades for additional or improved functionality and technological advances; and professional services, such as solutions planning and implementation, and related consulting services. In addition, it provides training and change management services; and resells computer hardware, radio frequency terminal networks, radio frequency identification chip readers, bar code printers and scanners, and other peripherals. The company offers products through direct sales personnel and partnership agreements with various organizations. It serves retail, consumer goods, food and grocery, logistics service providers, industrial and wholesale, high technology and electronics, life sciences, and government industries. The company operates in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Manhattan Associates, Inc. was founded in 1990 and is headquartered in Atlanta, Georgia.