Head-To-Head Contrast: Magic Software Enterprises (NASDAQ:MGIC) and Code Rebel (OTCMKTS:CDRBQ)

Code Rebel (OTCMKTS:CDRBQ) and Magic Software Enterprises (NASDAQ:MGIC) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Institutional and Insider Ownership

24.7% of Magic Software Enterprises shares are owned by institutional investors. 4.5% of Magic Software Enterprises shares are owned by company 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.

Valuation and Earnings

This table compares Code Rebel and Magic Software Enterprises”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Code Rebel	N/A	N/A	N/A	N/A	N/A
Magic Software Enterprises	$584.53 million	1.94	$36.88 million	$0.78	29.56

Magic Software Enterprises has higher revenue and earnings than Code Rebel.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Code Rebel and Magic Software Enterprises, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Code Rebel	0	0	0	0	0.00
Magic Software Enterprises	0	3	1	0	2.25

Magic Software Enterprises has a consensus price target of $18.00, suggesting a potential downside of 21.94%. Given Code Rebel’s higher probable upside, equities analysts clearly believe Code Rebel is more favorable than Magic Software Enterprises.

Risk and Volatility

Code Rebel has a beta of 92.9, meaning that its stock price is 9,190% more volatile than the S&P 500. Comparatively, Magic Software Enterprises has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Code Rebel	N/A	N/A	N/A
Magic Software Enterprises	6.58%	15.85%	8.89%

Summary

Magic Software Enterprises beats Code Rebel on 8 of the 10 factors compared between the two stocks.

About Code Rebel

Code Rebel Corporation operates as a software and information technology (IT) services company. It operates in two segments, Software and IT Services. The Software segment develops, markets, and licenses interactive remote application terminal services solution (iRAPP). The iRAPP allows personal computers users to use applications on a single Mac remote desktop simultaneously via the iRAPP client or any standard compliant remote desktop protocol client. This segment offers iRAPP client-side products for Mac OS X and Windows applications; iRAPP terminal server products, including iRAPP-single-user remote desktop and iRAPP-TS multiple-user terminal server for Mac OS X applications; and iRAPP access products, such as iRAPP Load Balancer and iRAPP Gateway. The IT Services segment provides Independent Software Vendor relationships (ISVs)/channel partner platforms, which provide project management, application, and technical consulting, as well as database administration for implementing projects and managed-services engagements; and professional services consulting that implements, upgrades, and maintains software packages those ISVs offer to their clients. Code Rebel Corporation was founded in 2007 and is based in Kahului, Hawaii.

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.