Magic Software Enterprises (NASDAQ: MGIC) and Okta (NASDAQ:OKTA) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, risk, dividends, earnings and profitability.
Valuation & Earnings
This table compares Magic Software Enterprises and Okta’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||$201.65 million||1.82||$11.90 million||$0.26||31.73|
|Okta||$160.32 million||23.97||-$83.50 million||($1.15)||-32.78|
This table compares Magic Software Enterprises and Okta’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%|
This is a breakdown of current recommendations and price targets for Magic Software Enterprises and Okta, 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, indicating a potential upside of 23.23%. Okta has a consensus target price of $36.44, indicating a potential downside of 3.33%. Given Magic Software Enterprises’ stronger consensus rating and higher probable upside, analysts plainly believe Magic Software Enterprises is more favorable than Okta.
Magic Software Enterprises pays an annual dividend of $0.26 per share and has a dividend yield of 3.2%. Okta does not pay a dividend. Magic Software Enterprises pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Institutional & Insider Ownership
10.0% of Magic Software Enterprises shares are held by institutional investors. Comparatively, 28.2% of Okta shares are held by institutional investors. 4.5% of Magic Software Enterprises shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Magic Software Enterprises beats Okta on 11 of the 15 factors compared between the two stocks.
Magic Software Enterprises Company Profile
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.
Okta Company Profile
Okta, Inc. is a United States-based independent provider of identity for the enterprise. The Company’s Okta Identity Cloud connects and protects employees. It also connects enterprises to their partners, suppliers and customers. The Company offers products, such as Okta information technology (IT) Products and Okta for Developers. Its Okta IT Products include Single Sign-On, Mobility Management, Adaptive Multi-Factor Authentication, Lifecycle Management and Universal Directory. The Okta for Developers include Complete Authentication, User Management, Application Programming Interface (API) Access Management and Developer Tools. The Company offers solutions, such as access applications across multiple domains; cloud applications on mobile devices; connecting to distributor and supplier identities; employee single sign-on (SSO) to applications; employee system of record; secure customer identity management; secure infrastructure and services, and mobile device lifecycle automation.
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.