MGIC
Magic Software Enterprises Ltd.
Information Technology Services
Market Cap$853M
5Y Perf.+70.9%
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Stock Comparison
MGIC vs AGYS
Revenue, margins, valuation, and 5-year total return — side by side.
AGYS
Agilysys, Inc.
Software - Application
Market Cap$2.05B
5Y Perf.+275.3%
MGIC vs AGYS — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | MGIC | AGYS |
|---|---|---|
| Industry | Information Technology Services | Software - Application |
| Market Cap | $853M | $2.05B |
| Revenue (TTM) | $603M | $311M |
| Net Income (TTM) | $40M | $30M |
| Gross Margin | 28.0% | 60.9% |
| Operating Margin | 10.8% | 10.6% |
| Forward P/E | 15.0x | 44.3x |
| Total Debt | $86M | $47M |
| Cash & Equiv. | $113M | $73M |
MGIC vs AGYS — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
MGIC
AGYS
| Stock | May 20 | Mar 26 | Return |
|---|---|---|---|
| Magic Software Ente… (MGIC) | 100 | 170.9 | +70.9% |
| Agilysys, Inc. (AGYS) | 100 | 375.3 | +275.3% |
Price return only. Dividends and distributions are not included.
Quick Verdict: MGIC vs AGYS
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: MGIC leads in 4 of 7 categories, making it the strongest pick for valuation and capital efficiency and dividend income and shareholder returns. Agilysys, Inc. is the stronger pick specifically for growth and revenue expansion and profitability and margin quality. As sector peers, any of these can serve as alternatives in the same allocation.
MGIC
Magic Software Enterprises Ltd.
The Income Pick
MGIC carries the broadest edge in this set and is the clearest fit for income & stability.
- Dividend streak 0 yrs, beta 1.46, yield 1.2%
- Lower P/E (15.0x vs 44.3x)
- 1.2% yield; the other pay no meaningful dividend
Best for: income & stability
AGYS
Agilysys, Inc.
The Growth Play
AGYS is the clearest fit if your priority is growth exposure and long-term compounding.
- Rev growth 16.1%, EPS growth -74.1%, 3Y rev CAGR 19.2%
- 5.7% 10Y total return vs MGIC's 222.0%
- Lower volatility, beta 0.87, Low D/E 17.7%, current ratio 1.11x
Best for: growth exposure and long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | AGYS | 16.1% revenue growth vs MGIC's 3.3% |
| Value | MGIC | Lower P/E (15.0x vs 44.3x) |
| Quality / Margins | AGYS | 9.8% margin vs MGIC's 6.6% |
| Stability / Safety | AGYS | Beta 0.87 vs MGIC's 1.46, lower leverage |
| Dividends | MGIC | 1.2% yield; the other pay no meaningful dividend |
| Momentum (1Y) | MGIC | +28.3% vs AGYS's -7.0% |
| Efficiency (ROA) | MGIC | 7.4% ROA vs AGYS's 6.4%, ROIC 16.2% vs 9.5% |
MGIC vs AGYS — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2021
FY 2024
MGIC vs AGYS — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLMGICLAGGINGAGYS
AGYSAgilysys, Inc.
1leads
MGICMagic Software Enterp…
3leads
6 Total Categories
CATEGORYLEADERvs AGYSMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
AGYS5/6
Valuation MetricsMultiples, price ratios, and targets
MGIC6/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
MGIC5/8
Total Returns1Y, 3Y, 5Y total returns with dividends
MGIC4/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
—
—
Income & Cash Flow (Last 12 Months)
AGYS leads this category, winning 5 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
MGIC is the larger business by revenue, generating $603M annually — 1.9x AGYS's $311M. Profitability is closely matched — net margins range from 9.8% (AGYS) to 6.6% (MGIC).
| Metric | MGICMagic Software En… | AGYSAgilysys, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $603M | $311M |
| EBITDAEarnings before interest/tax | $87M | $43M |
| Net IncomeAfter-tax profit | $40M | $30M |
| Free Cash FlowCash after capex | $64M | $59M |
| Gross MarginGross profit ÷ Revenue | +28.0% | +60.9% |
| Operating MarginEBIT ÷ Revenue | +10.8% | +10.6% |
| Net MarginNet income ÷ Revenue | +6.6% | +9.8% |
| FCF MarginFCF ÷ Revenue | +10.7% | +19.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | +13.1% | +15.6% |
| EPS Growth (YoY)Latest quarter vs prior year | +17.6% | +150.0% |
AGYS leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
MGIC leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
At 23.2x trailing earnings, MGIC trades at a 74% valuation discount to AGYS's 88.9x P/E. On an enterprise value basis, MGIC's 10.1x EV/EBITDA is more attractive than AGYS's 66.1x.
| Metric | MGICMagic Software En… | AGYSAgilysys, Inc. |
|---|---|---|
| Market CapShares × price | $853M | $2.0B |
| Enterprise ValueMkt cap + debt − cash | $827M | $2.0B |
| Trailing P/EPrice ÷ TTM EPS | 23.17x | 88.94x |
| Forward P/EPrice ÷ next-FY EPS est. | 14.98x | 44.33x |
| PEG RatioP/E ÷ EPS growth rate | 0.98x | — |
| EV / EBITDAEnterprise value multiple | 10.07x | 66.14x |
| Price / SalesMarket cap ÷ Revenue | 1.54x | 7.43x |
| Price / BookPrice ÷ Book value/share | 2.83x | 7.75x |
| Price / FCFMarket cap ÷ FCF | 11.64x | 39.15x |
MGIC leads this category, winning 6 of 6 comparable metrics.
Profitability & Efficiency
MGIC leads this category, winning 5 of 8 comparable metrics.
Profitability & Efficiency
MGIC delivers a 13.4% return on equity — every $100 of shareholder capital generates $13 in annual profit, vs $10 for AGYS. AGYS carries lower financial leverage with a 0.18x debt-to-equity ratio, signaling a more conservative balance sheet compared to MGIC's 0.29x.
| Metric | MGICMagic Software En… | AGYSAgilysys, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +13.4% | +9.7% |
| ROA (TTM)Return on assets | +7.4% | +6.4% |
| ROICReturn on invested capital | +16.2% | +9.5% |
| ROCEReturn on capital employed | +16.3% | +7.7% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 4 |
| Debt / EquityFinancial leverage | 0.29x | 0.18x |
| Net DebtTotal debt minus cash | -$27M | -$26M |
| Cash & Equiv.Liquid assets | $113M | $73M |
| Total DebtShort + long-term debt | $86M | $47M |
| Interest CoverageEBIT ÷ Interest expense | 11.90x | 55.21x |
MGIC leads this category, winning 5 of 8 comparable metrics.
Total Returns (Dividends Reinvested)
MGIC leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in AGYS five years ago would be worth $13,985 today (with dividends reinvested), compared to $12,445 for MGIC. Over the past 12 months, MGIC leads with a +28.3% total return vs AGYS's -7.0%. The 3-year compound annual growth rate (CAGR) favors MGIC at 10.9% vs AGYS's -1.4% — a key indicator of consistent wealth creation.
| Metric | MGICMagic Software En… | AGYSAgilysys, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -33.3% | -36.9% |
| 1-Year ReturnPast 12 months | +28.3% | -7.0% |
| 3-Year ReturnCumulative with dividends | +36.5% | -4.2% |
| 5-Year ReturnCumulative with dividends | +24.4% | +39.8% |
| 10-Year ReturnCumulative with dividends | +222.0% | +571.5% |
| CAGR (3Y)Annualised 3-year return | +10.9% | -1.4% |
MGIC leads this category, winning 4 of 6 comparable metrics.
Risk & Volatility
Evenly matched — MGIC and AGYS each lead in 1 of 2 comparable metrics.
Risk & Volatility
AGYS is the less volatile stock with a 0.87 beta — it tends to amplify market swings less than MGIC's 1.46 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. MGIC currently trades 62.1% from its 52-week high vs AGYS's 50.2% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | MGICMagic Software En… | AGYSAgilysys, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.46x | 0.87x |
| 52-Week HighHighest price in past year | $28.00 | $145.25 |
| 52-Week LowLowest price in past year | $13.85 | $61.50 |
| % of 52W HighCurrent price vs 52-week peak | +62.1% | +50.2% |
| RSI (14)Momentum oscillator 0–100 | 30.7 | 50.7 |
| Avg Volume (50D)Average daily shares traded | 34K | 277K |
Evenly matched — MGIC and AGYS each lead in 1 of 2 comparable metrics.
Analyst Outlook
Insufficient data to determine a leader in this category.
Analyst Outlook
Wall Street rates MGIC as "Buy" and AGYS as "Buy". Consensus price targets imply 44.0% upside for AGYS (target: $105) vs 6.4% for MGIC (target: $19). MGIC is the only dividend payer here at 1.17% yield — a key consideration for income-focused portfolios.
| Metric | MGICMagic Software En… | AGYSAgilysys, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $18.50 | $105.00 |
| # AnalystsCovering analysts | 6 | 8 |
| Dividend YieldAnnual dividend ÷ price | +1.2% | — |
| Dividend StreakConsecutive years of raises | 0 | 0 |
| Dividend / ShareAnnual DPS | $0.20 | — |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +0.1% |
Insufficient data to determine a leader in this category.
Key Takeaway
MGIC leads in 3 of 6 categories (Valuation Metrics, Profitability & Efficiency). AGYS leads in 1 (Income & Cash Flow). 1 tied.
Best OverallMagic Software Enterprises … (MGIC)Leads 3 of 6 categories
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MGIC vs AGYS: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is MGIC or AGYS a better buy right now?
For growth investors, Agilysys, Inc.
(AGYS) is the stronger pick with 16. 1% revenue growth year-over-year, versus 3. 3% for Magic Software Enterprises Ltd. (MGIC). Magic Software Enterprises Ltd. (MGIC) offers the better valuation at 23. 2x trailing P/E (15. 0x forward), making it the more compelling value choice. Analysts rate Magic Software Enterprises Ltd. (MGIC) a "Buy" — based on 6 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — MGIC or AGYS?
On trailing P/E, Magic Software Enterprises Ltd.
(MGIC) is the cheapest at 23. 2x versus Agilysys, Inc. at 88. 9x. On forward P/E, Magic Software Enterprises Ltd. is actually cheaper at 15. 0x.
03Which is the better long-term investment — MGIC or AGYS?
Over the past 5 years, Agilysys, Inc.
(AGYS) delivered a total return of +39. 8%, compared to +24. 4% for Magic Software Enterprises Ltd. (MGIC). Over 10 years, the gap is even starker: AGYS returned +571. 5% versus MGIC's +222. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — MGIC or AGYS?
By beta (market sensitivity over 5 years), Agilysys, Inc.
(AGYS) is the lower-risk stock at 0. 87β versus Magic Software Enterprises Ltd. 's 1. 46β — meaning MGIC is approximately 68% more volatile than AGYS relative to the S&P 500. On balance sheet safety, Agilysys, Inc. (AGYS) carries a lower debt/equity ratio of 18% versus 29% for Magic Software Enterprises Ltd. — giving it more financial flexibility in a downturn.
05Which is growing faster — MGIC or AGYS?
By revenue growth (latest reported year), Agilysys, Inc.
(AGYS) is pulling ahead at 16. 1% versus 3. 3% for Magic Software Enterprises Ltd. (MGIC). On earnings-per-share growth, the picture is similar: Magic Software Enterprises Ltd. grew EPS 0. 0% year-over-year, compared to -74. 1% for Agilysys, Inc.. Over a 3-year CAGR, AGYS leads at 19. 2% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — MGIC or AGYS?
Agilysys, Inc.
(AGYS) is the more profitable company, earning 8. 4% net margin versus 6. 7% for Magic Software Enterprises Ltd. — meaning it keeps 8. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MGIC leads at 11. 1% versus 8. 2% for AGYS. At the gross margin level — before operating expenses — AGYS leads at 62. 4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is MGIC or AGYS more undervalued right now?
On forward earnings alone, Magic Software Enterprises Ltd.
(MGIC) trades at 15. 0x forward P/E versus 44. 3x for Agilysys, Inc. — 29. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AGYS: 44. 0% to $105. 00.
08Which pays a better dividend — MGIC or AGYS?
In this comparison, MGIC (1.
2% yield) pays a dividend. AGYS does not pay a meaningful dividend and should not be held primarily for income.
09Is MGIC or AGYS better for a retirement portfolio?
For long-horizon retirement investors, Agilysys, Inc.
(AGYS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 87), +571. 5% 10Y return). Both have compounded well over 10 years (AGYS: +571. 5%, MGIC: +222. 0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between MGIC and AGYS?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: MGIC is a small-cap quality compounder stock; AGYS is a small-cap high-growth stock. MGIC pays a dividend while AGYS does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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Revenue Growth>
%
(MGIC: 13.1% · AGYS: 15.6%)Net Margin>
%
(MGIC: 6.6% · AGYS: 9.8%)P/E Ratio<
x
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