Magic Software Enterprises (NASDAQ:MGIC – Get Free Report) and D-Wave Quantum (NASDAQ:QBTS – Get Free Report) are both technology companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, dividends, valuation, earnings, profitability and analyst recommendations.
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, D-Wave Quantum has a beta of 2.35, meaning that its share price is 135% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings for Magic Software Enterprises and D-Wave Quantum, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Magic Software Enterprises | 0 | 1 | 0 | 0 | 2.00 |
| D-Wave Quantum | 1 | 2 | 13 | 0 | 2.75 |
D-Wave Quantum has a consensus price target of $35.40, suggesting a potential upside of 241.37%. Given D-Wave Quantum’s stronger consensus rating and higher probable upside, analysts plainly believe D-Wave Quantum is more favorable than Magic Software Enterprises.
Earnings & Valuation
This table compares Magic Software Enterprises and D-Wave Quantum”s top-line revenue, earnings per share (EPS) 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 |
| D-Wave Quantum | $24.59 million | 156.00 | -$355.06 million | ($0.71) | -14.61 |
Magic Software Enterprises has higher revenue and earnings than D-Wave Quantum. D-Wave Quantum 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.
Insider and Institutional Ownership
24.7% of Magic Software Enterprises shares are held by institutional investors. Comparatively, 42.5% of D-Wave Quantum shares are held by institutional investors. 4.5% of Magic Software Enterprises shares are held by insiders. Comparatively, 1.3% of D-Wave Quantum shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares Magic Software Enterprises and D-Wave Quantum’s 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% |
| D-Wave Quantum | -2,001.59% | -26.67% | -24.03% |
Summary
Magic Software Enterprises beats D-Wave Quantum on 7 of the 13 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 D-Wave Quantum
D-Wave Quantum Inc. develops and delivers quantum computing systems, software, and services worldwide. The company offers Advantage, a fifth-generation quantum computer; Ocean, a suite of open-source python tools; and Leap, a cloud-based service that provides real-time access to a live quantum computer, as well as access to Advantage, hybrid solvers, the Ocean software development kit, live code, demos, learning resources, and a vibrant developer community. It also provides D-Wave Launch, a quantum professional service that guides enterprises from problem discovery through production implementation. The company's quantum solutions are used in logistics, financial services, drug discovery, materials sciences, scheduling, fault detection, mobility, and supply chain management. It serves financial services, manufacturing/logistics, mobility, and life sciences/pharmaceuticals industries. D-Wave Quantum Inc. was founded in 1999 and is headquartered in Burnaby, Canada.
Receive News & Ratings for Magic Software Enterprises Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Magic Software Enterprises and related companies with MarketBeat.com's FREE daily email newsletter.
