Head-To-Head Analysis: OptimizeRx (NASDAQ:OPRX) vs. Magic Software Enterprises (NASDAQ:MGIC)

Magic Software Enterprises (NASDAQ:MGIC) and OptimizeRx (NASDAQ:OPRX) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.

Volatility and Risk

Magic Software Enterprises has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, OptimizeRx has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500.

Insider & Institutional Ownership

24.7% of Magic Software Enterprises shares are held by institutional investors. Comparatively, 76.5% of OptimizeRx shares are held by institutional investors. 4.5% of Magic Software Enterprises shares are held by insiders. Comparatively, 5.6% of OptimizeRx shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Magic Software Enterprises and OptimizeRx, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magic Software Enterprises	0	2	1	0	2.33
OptimizeRx	1	1	6	1	2.78

Magic Software Enterprises presently has a consensus price target of $18.00, indicating a potential upside of 3.57%. OptimizeRx has a consensus price target of $17.57, indicating a potential upside of 173.27%. Given OptimizeRx’s stronger consensus rating and higher possible upside, analysts clearly believe OptimizeRx is more favorable than Magic Software Enterprises.

Valuation and Earnings

This table compares Magic Software Enterprises and OptimizeRx”s gross 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
OptimizeRx	$109.43 million	1.10	$5.13 million	$0.26	24.73

Magic Software Enterprises has higher revenue and earnings than OptimizeRx. Magic Software Enterprises is trading at a lower price-to-earnings ratio than OptimizeRx, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Magic Software Enterprises and OptimizeRx’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%
OptimizeRx	4.69%	10.61%	7.54%

Summary

OptimizeRx beats Magic Software Enterprises on 8 of the 15 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 OptimizeRx

OptimizeRx Corporation, a digital health technology company, enables care-focused engagement between life sciences organizations, healthcare providers, and patients at critical junctures throughout the patient care journey. It offers various tech-enabled marketing solutions through its Artificial Intelligence-generated Dynamic Audience and Activation Platform, which enables customers to execute traditional marketing campaigns on its proprietary digital point-of-care network, as well as dynamic marketing campaigns that optimize audiences in real time to increase the value of treatment information for healthcare professionals and patients in response to clinical care events. The company was founded in 2006 and is based in Waltham, Massachusetts.