Head to Head Contrast: Magic Empire Global (NASDAQ:MEGL) & Applied Digital (NASDAQ:APLD)

Magic Empire Global (NASDAQ:MEGL) and Applied Digital (NASDAQ:APLD) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.

Profitability

This table compares Magic Empire Global and Applied Digital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Magic Empire Global	N/A	N/A	N/A
Applied Digital	-111.29%	-37.14%	-12.01%

Institutional & Insider Ownership

0.5% of Magic Empire Global shares are held by institutional investors. Comparatively, 65.7% of Applied Digital shares are held by institutional investors. 63.0% of Magic Empire Global shares are held by company insiders. Comparatively, 9.5% of Applied Digital shares are held 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.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Magic Empire Global and Applied Digital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magic Empire Global	1	0	0	0	1.00
Applied Digital	1	0	11	1	2.92

Applied Digital has a consensus price target of $26.20, suggesting a potential downside of 20.05%. Given Applied Digital’s stronger consensus rating and higher possible upside, analysts plainly believe Applied Digital is more favorable than Magic Empire Global.

Earnings and Valuation

This table compares Magic Empire Global and Applied Digital”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Magic Empire Global	$1.65 million	3.37	-$610,000.00	N/A	N/A
Applied Digital	$173.56 million	52.59	-$231.07 million	($1.13)	-29.00

Magic Empire Global has higher earnings, but lower revenue than Applied Digital.

Risk and Volatility

Magic Empire Global has a beta of 2.79, suggesting that its share price is 179% more volatile than the S&P 500. Comparatively, Applied Digital has a beta of 6.95, suggesting that its share price is 595% more volatile than the S&P 500.

Summary

Applied Digital beats Magic Empire Global on 8 of the 13 factors compared between the two stocks.

About Magic Empire Global

Magic Empire Global Limited engages in the provision of corporate finance advisory services and underwriting services in Hong Kong. The company provides initial public offering sponsorship, financial and independent financial advisory, post-listing compliance advisory, and underwriting services by acting as global coordinator, bookrunner, lead manager, or underwriter. It also offers corporate services, which include accounting and financial reporting advisory, company secretarial services, internal control enhancement, investor relations advisory, and other consulting services. The company was incorporated in 2016 and is headquartered in Central, Hong Kong.

About Applied Digital

Applied Digital Corporation designs, develops, and operates datacenters in North America. Its datacenters provide digital infrastructure solutions to the high-performance computing industry. The company also provides artificial intelligence cloud services, high performance computing datacenter hosting, and crypto datacenter hosting services. The company was formerly known as Applied Blockchain, Inc. and changed its name to Applied Digital Corporation in November 2022. Applied Digital Corporation is based in Dallas, Texas.