Amber Road (AMBR) & Magic Software Enterprises (MGIC) Head-To-Head Contrast
Magic Software Enterprises (NASDAQ: MGIC) and Amber Road (NYSE:AMBR) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.
Earnings and Valuation
This table compares Magic Software Enterprises and Amber Road’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Magic Software Enterprises||$201.65 million||1.92||$11.90 million||$0.27||32.22|
|Amber Road||$73.16 million||2.72||-$18.72 million||($0.57)||-12.81|
This is a summary of recent ratings and recommmendations for Magic Software Enterprises and Amber Road, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Magic Software Enterprises||0||0||3||0||3.00|
Magic Software Enterprises presently has a consensus target price of $10.17, suggesting a potential upside of 16.86%. Amber Road has a consensus target price of $12.00, suggesting a potential upside of 64.38%. Given Amber Road’s higher possible upside, analysts clearly believe Amber Road is more favorable than Magic Software Enterprises.
Magic Software Enterprises pays an annual dividend of $0.26 per share and has a dividend yield of 3.0%. Amber Road does not pay a dividend. Magic Software Enterprises pays out 96.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Insider & Institutional Ownership
9.3% of Magic Software Enterprises shares are owned by institutional investors. Comparatively, 72.6% of Amber Road shares are owned by institutional investors. 4.5% of Magic Software Enterprises shares are owned by company insiders. Comparatively, 13.1% of Amber Road shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
Magic Software Enterprises has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, Amber Road has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500.
This table compares Magic Software Enterprises and Amber Road’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Magic Software Enterprises||4.77%||10.37%||6.30%|
Magic Software Enterprises beats Amber Road on 8 of the 14 factors compared between the two stocks.
About Magic Software Enterprises
Magic Software Enterprises Ltd. is a provider of application development, business process integration platforms, vertical software solutions and related professional services. The Company is a vendor of information technology (IT) outsourcing services. Its software technology is used by customers to develop, deploy and integrate on premise, mobile and cloud-based business. It operates through two segments: software solutions and IT professional services. The software services segment includes software technology and complementary services. The 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. Its product portfolio includes Magic xpa Application Platform, AppBuilder Application Platform and Magic xpi Integration Platform. Its vertical software packages include Leap, Hermes Solution, HR Pulse and MBS Solution.
About Amber Road
Amber Road, Inc. is a provider of cloud-based global trade management (GTM) solutions. The Company’s GTM solutions include modules for logistics contract and rate management, supply chain visibility and event management, international trade compliance, and Global Knowledge trade content database to importers and exporters, non-vessel owning common carriers (resellers), and ocean carriers. The Company delivers its GTM solution using a software-as-a-service (SaaS) model. The Company’s solution automates the global supply chain across sourcing, logistics, cross-border trade and regulatory compliance activities. The Company’s GTM solution combines enterprise-class software, trade content sourced from government agencies and transportation providers in approximately 145 countries, and a global supply chain network connecting its customers with the trading partners, including suppliers, freight forwarders, customs brokers and transportation carriers.
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