Comparing Unitronix (OTCMKTS:UTRX) and Magic Software Enterprises (NASDAQ:MGIC)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Unitronix	N/A	N/A	N/A	N/A	N/A
Magic Software Enterprises	$603.22 million	1.41	$36.88 million	$0.81	21.46

Magic Software Enterprises has higher revenue and earnings than Unitronix.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Unitronix and Magic Software Enterprises, as reported by MarketBeat.com.

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

Magic Software Enterprises has a consensus price target of $18.00, suggesting a potential upside of 3.57%. Given Magic Software Enterprises’ stronger consensus rating and higher probable upside, analysts clearly believe Magic Software Enterprises is more favorable than Unitronix.

Volatility and Risk

Unitronix has a beta of 5.27, indicating that its stock price is 427% more volatile than the S&P 500. Comparatively, Magic Software Enterprises has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Unitronix	N/A	N/A	N/A
Magic Software Enterprises	6.61%	16.28%	8.96%

Insider and Institutional Ownership

24.7% of Magic Software Enterprises shares are owned by institutional investors. 52.1% of Unitronix shares are owned by company insiders. Comparatively, 4.5% of Magic Software Enterprises shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

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

About Unitronix

Unitronix Corporation, a software development and services company, provides knowledge based tools to the mineral exploration industry. It offers PRAXA, which is used to manage sales, distribution, manufacturing, and accounting functions of manufacturing and distribution companies; and GEO-SLEUTH, which automates the early stages of grass roots mineral exploration. The company also explores for gold and base metal properties. Unitronix Corporation was founded in 1975 and is based in Marlton, New Jersey. Unitronix Corporation is a subsidiary of Istamar Holdings.

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.