Magic Software Enterprises (NASDAQ:MGIC) versus SMS Alternatives (OTCMKTS:CICN) Financial Comparison

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Magic Software Enterprises and SMS Alternatives, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magic Software Enterprises	0	2	1	0	2.33
SMS Alternatives	0	0	0	0	0.00

Magic Software Enterprises presently has a consensus target price of $18.00, indicating a potential upside of 3.57%. Given Magic Software Enterprises’ stronger consensus rating and higher possible upside, research analysts plainly believe Magic Software Enterprises is more favorable than SMS Alternatives.

Valuation & Earnings

This table compares Magic Software Enterprises and SMS Alternatives”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
SMS Alternatives	N/A	N/A	N/A	N/A	N/A

Magic Software Enterprises has higher revenue and earnings than SMS Alternatives.

Profitability

This table compares Magic Software Enterprises and SMS Alternatives’ 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%
SMS Alternatives	N/A	N/A	N/A

Institutional & 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. Comparatively, 89.0% of SMS Alternatives shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Magic Software Enterprises beats SMS Alternatives on 8 of the 9 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 SMS Alternatives

SMS Alternatives Inc. provides business integration software solutions in the United States and Europe. The company's software enables organizations to integrate new and existing information and processes at the desktop; and addresses the need for a company's information systems to deliver enterprise-wide views of their business information processes. It offers Cicero Discovery, a configurable tool to collect activity and application performance data, and track business objects across time and multiple users, as well as measure against a defined expected business process flow; and Cicero Insight, a measurement and analytics solution that collects and presents information about quality, productivity, compliance, and revenue from frontline activity to target areas for improvement. The company also provides Cicero Automation that delivers features of the Cicero Discovery product, as well as desktop automation for enterprise contact center and back office employees; integrates applications and automates workflow; and control and adaptability at the end user desktop. In addition, it offers technical support, training, and consulting services. The company sells its products and services directly, as well as through distributors and other intermediaries who resell it to end-users. It serves financial services, insurance, and telecommunications industries; and business process outsourcers, as well as intelligence, security, law enforcement, and other governmental organizations. The company was formerly known as Cicero Inc. and changed its name to SMS Alternatives Inc. in June 2023. SMS Alternatives Inc. was founded in 1988 and is headquartered in Cary, North Carolina.