Magic Software Enterprises (NASDAQ:MGIC – Get Free Report) and Intapp (NASDAQ:INTA – Get Free Report) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.
Institutional and Insider Ownership
24.7% of Magic Software Enterprises shares are held by institutional investors. Comparatively, 90.0% of Intapp shares are held by institutional investors. 4.5% of Magic Software Enterprises shares are held by company insiders. Comparatively, 36.6% of Intapp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Magic Software Enterprises and Intapp’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 | $535.05 million | 1.07 | $37.09 million | $0.75 | 15.52 |
| Intapp | $350.87 million | 6.44 | -$69.43 million | ($0.80) | -38.69 |
Profitability
This table compares Magic Software Enterprises and Intapp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Magic Software Enterprises | 6.92% | 17.33% | 9.32% |
| Intapp | -13.81% | -12.98% | -7.12% |
Risk & Volatility
Magic Software Enterprises has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500. Comparatively, Intapp has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and price targets for Magic Software Enterprises and Intapp, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Magic Software Enterprises | 0 | 0 | 1 | 0 | 3.00 |
| Intapp | 0 | 0 | 8 | 0 | 3.00 |
Magic Software Enterprises presently has a consensus target price of $14.00, suggesting a potential upside of 21.00%. Intapp has a consensus target price of $49.22, suggesting a potential upside of 60.54%. Given Intapp’s higher probable upside, analysts clearly believe Intapp is more favorable than Magic Software Enterprises.
Summary
Magic Software Enterprises beats Intapp on 7 of the 12 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. The company's Software Services segment develops, markets, sells, and supports application platform, software applications, and business and process integration solutions and related services. Its 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. It 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, the company 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 Intapp
Intapp, Inc., through its subsidiary, Integration Appliance, Inc., provides industry-specific cloud-based software solutions for the professional and financial services industry in the United States, the United Kingdom, and internationally. Its solutions include DealCloud, a deal and relationship management solution that manages financial services firms' market relationships, prospective clients and investments, current engagements and deal processes, and operations and compliance activities; collaboration and content solutions, including Intapp documents, an engagement-centric document management system, and Intapp workspaces; risk and compliance management solutions, such as Intapp conflicts, Intapp intake, Intapp terms, Intapp walls, and Intapp employee compliance; and operational and financial management solutions comprising Intapp Billstream, a cloud-based automated proforma invoice solution, Intapp time, and Intapp terms. The company's solutions enable private capital, investment banking, legal, accounting, and consulting firms to realize the benefits of modern AI and cloud-based architectures for their critical business functions without compromising industry-specific functionality or regulatory compliance. It also offers strategic advisory, operational transformation, technology and digital strategy, data strategy, risk management, change management, program management, and M&A preparation; implementation services; managed services; and technical support services, as well as collaboration and integration solutions. The company sells its software on a subscription basis through a direct enterprise sales model. The company was formerly known as LegalApp Holdings, Inc. and changed its name to Intapp, Inc. in February 2021. Intapp, Inc. was founded in 2000 and is headquartered in Palo Alto, California.
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