MGIC
Magic Software Enterprises Ltd.
Information Technology Services
Market Cap$853M
5Y Perf.+70.9%
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Stock Comparison
MGIC vs APPN
Revenue, margins, valuation, and 5-year total return — side by side.
APPN
Appian Corporation
Software - Infrastructure
Market Cap$1.76B
5Y Perf.-53.2%
MGIC vs APPN — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | MGIC | APPN |
|---|---|---|
| Industry | Information Technology Services | Software - Infrastructure |
| Market Cap | $853M | $1.76B |
| Revenue (TTM) | $603M | $763M |
| Net Income (TTM) | $40M | $885K |
| Gross Margin | 28.0% | 73.8% |
| Operating Margin | 10.8% | 0.6% |
| Forward P/E | 15.0x | 26.7x |
| Total Debt | $86M | $345M |
| Cash & Equiv. | $113M | $136M |
MGIC vs APPN — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
MGIC
APPN
| Stock | May 20 | Mar 26 | Return |
|---|---|---|---|
| Magic Software Ente… (MGIC) | 100 | 170.9 | +70.9% |
| Appian Corporation (APPN) | 100 | 46.8 | -53.2% |
Price return only. Dividends and distributions are not included.
Quick Verdict: MGIC vs APPN
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: MGIC leads in 5 of 7 categories, making it the strongest pick for valuation and capital efficiency and profitability and margin quality. Appian Corporation is the stronger pick specifically for growth and revenue expansion and capital preservation and lower volatility. As sector peers, any of these can serve as alternatives in the same allocation.
MGIC
Magic Software Enterprises Ltd.
The Long-Run Compounder
MGIC carries the broadest edge in this set and is the clearest fit for long-term compounding.
- 222.0% 10Y total return vs APPN's 58.3%
- Lower P/E (15.0x vs 26.7x)
- 6.6% margin vs APPN's 0.1%
Best for: long-term compounding
APPN
Appian Corporation
The Income Pick
APPN is the clearest fit if your priority is income & stability and growth exposure.
- Dividend streak 1 yrs, beta 0.81
- Rev growth 17.8%, EPS growth 101.3%, 3Y rev CAGR 15.8%
- Lower volatility, beta 0.81, current ratio 1.15x
Best for: income & stability and growth exposure
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | APPN | 17.8% revenue growth vs MGIC's 3.3% |
| Value | MGIC | Lower P/E (15.0x vs 26.7x) |
| Quality / Margins | MGIC | 6.6% margin vs APPN's 0.1% |
| Stability / Safety | APPN | Beta 0.81 vs MGIC's 1.46 |
| Dividends | MGIC | 1.2% yield; the other pay no meaningful dividend |
| Momentum (1Y) | MGIC | +28.3% vs APPN's -21.9% |
| Efficiency (ROA) | MGIC | 7.4% ROA vs APPN's 0.1%, ROIC 16.2% vs 0.3% |
MGIC vs APPN — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2021
FY 2025
MGIC vs APPN — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLMGICLAGGINGAPPN
APPNAppian Corporation
1leads
MGICMagic Software Enterp…
4leads
6 Total Categories
CATEGORYLEADERvs APPNMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
MGIC4/6
Valuation MetricsMultiples, price ratios, and targets
MGIC5/5
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
MGIC6/7
Total Returns1Y, 3Y, 5Y total returns with dividends
MGIC5/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
APPN1/1
Income & Cash Flow (Last 12 Months)
MGIC leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
APPN and MGIC operate at a comparable scale, with $763M and $603M in trailing revenue. MGIC is the more profitable business, keeping 6.6% of every revenue dollar as net income compared to APPN's 0.1%. On growth, APPN holds the edge at +21.5% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | MGICMagic Software En… | APPNAppian Corporation |
|---|---|---|
| RevenueTrailing 12 months | $603M | $763M |
| EBITDAEarnings before interest/tax | $87M | $12M |
| Net IncomeAfter-tax profit | $40M | $885,000 |
| Free Cash FlowCash after capex | $64M | $67M |
| Gross MarginGross profit ÷ Revenue | +28.0% | +73.8% |
| Operating MarginEBIT ÷ Revenue | +10.8% | +0.6% |
| Net MarginNet income ÷ Revenue | +6.6% | +0.1% |
| FCF MarginFCF ÷ Revenue | +10.7% | +8.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | +13.1% | +21.5% |
| EPS Growth (YoY)Latest quarter vs prior year | +17.6% | -25.8% |
MGIC leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
MGIC leads this category, winning 5 of 5 comparable metrics.
Valuation Metrics
At 23.2x trailing earnings, MGIC trades at a 98% valuation discount to APPN's 1440.0x P/E. On an enterprise value basis, MGIC's 10.1x EV/EBITDA is more attractive than APPN's 190.9x.
| Metric | MGICMagic Software En… | APPNAppian Corporation |
|---|---|---|
| Market CapShares × price | $853M | $1.8B |
| Enterprise ValueMkt cap + debt − cash | $827M | $2.0B |
| Trailing P/EPrice ÷ TTM EPS | 23.17x | 1440.00x |
| Forward P/EPrice ÷ next-FY EPS est. | 14.98x | 26.74x |
| PEG RatioP/E ÷ EPS growth rate | 0.98x | — |
| EV / EBITDAEnterprise value multiple | 10.07x | 190.89x |
| Price / SalesMarket cap ÷ Revenue | 1.54x | 2.42x |
| Price / BookPrice ÷ Book value/share | 2.83x | — |
| Price / FCFMarket cap ÷ FCF | 11.64x | 29.54x |
MGIC leads this category, winning 5 of 5 comparable metrics.
Profitability & Efficiency
MGIC leads this category, winning 6 of 7 comparable metrics.
Profitability & Efficiency
On the Piotroski fundamental quality scale (0–9), APPN scores 6/9 vs MGIC's 4/9, reflecting solid financial health.
| Metric | MGICMagic Software En… | APPNAppian Corporation |
|---|---|---|
| ROE (TTM)Return on equity | +13.4% | — |
| ROA (TTM)Return on assets | +7.4% | +0.1% |
| ROICReturn on invested capital | +16.2% | +0.3% |
| ROCEReturn on capital employed | +16.3% | +0.2% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 6 |
| Debt / EquityFinancial leverage | 0.29x | — |
| Net DebtTotal debt minus cash | -$27M | $210M |
| Cash & Equiv.Liquid assets | $113M | $136M |
| Total DebtShort + long-term debt | $86M | $345M |
| Interest CoverageEBIT ÷ Interest expense | 11.90x | 1.14x |
MGIC leads this category, winning 6 of 7 comparable metrics.
Total Returns (Dividends Reinvested)
MGIC leads this category, winning 5 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in MGIC five years ago would be worth $12,445 today (with dividends reinvested), compared to $2,692 for APPN. Over the past 12 months, MGIC leads with a +28.3% total return vs APPN's -21.9%. The 3-year compound annual growth rate (CAGR) favors MGIC at 10.9% vs APPN's -12.5% — a key indicator of consistent wealth creation.
| Metric | MGICMagic Software En… | APPNAppian Corporation |
|---|---|---|
| YTD ReturnYear-to-date | -33.3% | -30.2% |
| 1-Year ReturnPast 12 months | +28.3% | -21.9% |
| 3-Year ReturnCumulative with dividends | +36.5% | -33.1% |
| 5-Year ReturnCumulative with dividends | +24.4% | -73.1% |
| 10-Year ReturnCumulative with dividends | +222.0% | +58.3% |
| CAGR (3Y)Annualised 3-year return | +10.9% | -12.5% |
MGIC leads this category, winning 5 of 6 comparable metrics.
Risk & Volatility
Evenly matched — MGIC and APPN each lead in 1 of 2 comparable metrics.
Risk & Volatility
APPN is the less volatile stock with a 0.81 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 APPN's 51.6% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | MGICMagic Software En… | APPNAppian Corporation |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.46x | 0.81x |
| 52-Week HighHighest price in past year | $28.00 | $46.06 |
| 52-Week LowLowest price in past year | $13.85 | $19.79 |
| % of 52W HighCurrent price vs 52-week peak | +62.1% | +51.6% |
| RSI (14)Momentum oscillator 0–100 | 30.7 | 54.3 |
| Avg Volume (50D)Average daily shares traded | 34K | 800K |
Evenly matched — MGIC and APPN each lead in 1 of 2 comparable metrics.
Analyst Outlook
APPN leads this category, winning 1 of 1 comparable metric.
Analyst Outlook
Wall Street rates MGIC as "Buy" and APPN as "Hold". Consensus price targets imply 31.5% upside for APPN (target: $31) 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… | APPNAppian Corporation |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $18.50 | $31.25 |
| # AnalystsCovering analysts | 6 | 19 |
| Dividend YieldAnnual dividend ÷ price | +1.2% | — |
| Dividend StreakConsecutive years of raises | 0 | 1 |
| Dividend / ShareAnnual DPS | $0.20 | — |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +1.1% |
APPN leads this category, winning 1 of 1 comparable metric.
Key Takeaway
MGIC leads in 4 of 6 categories (Income & Cash Flow, Valuation Metrics). APPN leads in 1 (Analyst Outlook). 1 tied.
Best OverallMagic Software Enterprises … (MGIC)Leads 4 of 6 categories
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MGIC vs APPN: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is MGIC or APPN a better buy right now?
For growth investors, Appian Corporation (APPN) is the stronger pick with 17.
8% 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 APPN?
On trailing P/E, Magic Software Enterprises Ltd.
(MGIC) is the cheapest at 23. 2x versus Appian Corporation at 1440. 0x. On forward P/E, Magic Software Enterprises Ltd. is actually cheaper at 15. 0x.
03Which is the better long-term investment — MGIC or APPN?
Over the past 5 years, Magic Software Enterprises Ltd.
(MGIC) delivered a total return of +24. 4%, compared to -73. 1% for Appian Corporation (APPN). Over 10 years, the gap is even starker: MGIC returned +222. 0% versus APPN's +58. 3%. 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 APPN?
By beta (market sensitivity over 5 years), Appian Corporation (APPN) is the lower-risk stock at 0.
81β versus Magic Software Enterprises Ltd. 's 1. 46β — meaning MGIC is approximately 80% more volatile than APPN relative to the S&P 500.
05Which is growing faster — MGIC or APPN?
By revenue growth (latest reported year), Appian Corporation (APPN) is pulling ahead at 17.
8% versus 3. 3% for Magic Software Enterprises Ltd. (MGIC). On earnings-per-share growth, the picture is similar: Appian Corporation grew EPS 101. 3% year-over-year, compared to 0. 0% for Magic Software Enterprises Ltd.. Over a 3-year CAGR, APPN leads at 15. 8% 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 APPN?
Magic Software Enterprises Ltd.
(MGIC) is the more profitable company, earning 6. 7% net margin versus 0. 2% for Appian Corporation — meaning it keeps 6. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MGIC leads at 11. 1% versus 0. 1% for APPN. At the gross margin level — before operating expenses — APPN leads at 72. 5%, 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 APPN more undervalued right now?
On forward earnings alone, Magic Software Enterprises Ltd.
(MGIC) trades at 15. 0x forward P/E versus 26. 7x for Appian Corporation — 11. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for APPN: 31. 5% to $31. 25.
08Which pays a better dividend — MGIC or APPN?
In this comparison, MGIC (1.
2% yield) pays a dividend. APPN does not pay a meaningful dividend and should not be held primarily for income.
09Is MGIC or APPN better for a retirement portfolio?
For long-horizon retirement investors, Magic Software Enterprises Ltd.
(MGIC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (1. 2% yield, +222. 0% 10Y return). Both have compounded well over 10 years (MGIC: +222. 0%, APPN: +58. 3%), 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 APPN?
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; APPN is a small-cap high-growth stock. MGIC pays a dividend while APPN 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% · APPN: 21.5%)P/E Ratio<
x
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