MGIC
Magic Software Enterprises Ltd.
Information Technology Services
Market Cap$853M
5Y Perf.+70.9%
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Stock Comparison
MGIC vs MSFT vs ORCL vs SAP
Revenue, margins, valuation, and 5-year total return — side by side.
MSFT
Microsoft Corporation
Software - Infrastructure
Market Cap$3.08T
5Y Perf.+114.3%
ORCL
Oracle Corporation
Software - Infrastructure
Market Cap$563.33B
5Y Perf.+170.4%
SAP
SAP SE
Software - Application
Market Cap$202.40B
5Y Perf.+57.3%
MGIC vs MSFT vs ORCL vs SAP — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | MGIC | MSFT | ORCL | SAP |
|---|---|---|---|---|
| Industry | Information Technology Services | Software - Infrastructure | Software - Infrastructure | Software - Application |
| Market Cap | $853M | $3.08T | $563.33B | $202.40B |
| Revenue (TTM) | $603M | $318.27B | $64.08B | $36.80B |
| Net Income (TTM) | $40M | $125.22B | $16.21B | $7.04B |
| Gross Margin | 28.0% | 68.3% | 66.4% | 73.8% |
| Operating Margin | 10.8% | 46.8% | 30.8% | 26.7% |
| Forward P/E | 15.0x | 24.8x | 26.2x | 23.7x |
| Total Debt | $86M | $112.18B | $104.10B | $8.07B |
| Cash & Equiv. | $113M | $30.24B | $10.79B | $8.22B |
MGIC vs MSFT vs ORCL vs SAP — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
MGIC
MSFT
ORCL
SAP
| Stock | May 20 | Mar 26 | Return |
|---|---|---|---|
| Magic Software Ente… (MGIC) | 100 | 170.9 | +70.9% |
| Microsoft Corporati… (MSFT) | 100 | 214.3 | +114.3% |
| Oracle Corporation (ORCL) | 100 | 270.4 | +170.4% |
| SAP SE (SAP) | 100 | 157.3 | +57.3% |
Price return only. Dividends and distributions are not included.
Quick Verdict: MGIC vs MSFT vs ORCL vs SAP
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: MSFT leads in 3 of 7 categories, making it the strongest pick for growth and revenue expansion and profitability and margin quality. SAP SE is the stronger pick specifically for capital preservation and lower volatility and dividend income and shareholder returns. MGIC and ORCL also each lead in at least one category. As sector peers, any of these can serve as alternatives in the same allocation.
MGIC
Magic Software Enterprises Ltd.
The Value Pick
MGIC is the clearest fit if your priority is valuation efficiency.
- PEG 0.63 vs ORCL's 3.69
- Lower P/E (15.0x vs 23.7x), PEG 0.63 vs 3.58
Best for: valuation efficiency
MSFT
Microsoft Corporation
The Growth Play
MSFT carries the broadest edge in this set and is the clearest fit for growth exposure and long-term compounding.
- Rev growth 14.9%, EPS growth 15.6%, 3Y rev CAGR 12.4%
- 7.8% 10Y total return vs ORCL's 428.7%
- 14.9% revenue growth vs MGIC's 3.3%
- 39.3% margin vs MGIC's 6.6%
Best for: growth exposure and long-term compounding
ORCL
Oracle Corporation
The Momentum Pick
ORCL is the clearest fit if your priority is momentum.
- +31.7% vs SAP's -38.9%
Best for: momentum
SAP
SAP SE
The Income Pick
SAP is the #2 pick in this set and the best alternative if income & stability and sleep-well-at-night is your priority.
- Dividend streak 2 yrs, beta 0.85, yield 1.5%
- Lower volatility, beta 0.85, Low D/E 17.8%, current ratio 1.17x
- Beta 0.85, yield 1.5%, current ratio 1.17x
- Beta 0.85 vs ORCL's 1.58, lower leverage
Best for: income & stability and sleep-well-at-night
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | MSFT | 14.9% revenue growth vs MGIC's 3.3% |
| Value | MGIC | Lower P/E (15.0x vs 23.7x), PEG 0.63 vs 3.58 |
| Quality / Margins | MSFT | 39.3% margin vs MGIC's 6.6% |
| Stability / Safety | SAP | Beta 0.85 vs ORCL's 1.58, lower leverage |
| Dividends | SAP | 1.5% yield, 2-year raise streak, vs MSFT's 0.8% |
| Momentum (1Y) | ORCL | +31.7% vs SAP's -38.9% |
| Efficiency (ROA) | MSFT | 19.2% ROA vs MGIC's 7.4%, ROIC 24.9% vs 16.2% |
MGIC vs MSFT vs ORCL vs SAP — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2021
FY 2025
FY 2025
FY 2025
MGIC vs MSFT vs ORCL vs SAP — Financial Metrics
Side-by-side numbers across 4 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLMSFTLAGGINGSAP
Who Leads Where
MSFT leads in 2 of 6 categories
MGIC leads 1 • ORCL leads 1 • SAP leads 0 • 2 tied
Explore the data ↓SAPSAP SE
0leads
ORCLOracle Corporation
1leads
MGICMagic Software Enterp…
1leads
MSFTMicrosoft Corporation
2leads
6 Total Categories
CATEGORYLEADERvs MGICvs ORCLMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
MSFT3/6
Valuation MetricsMultiples, price ratios, and targets
MGIC7/7
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
MSFT4/9
Total Returns1Y, 3Y, 5Y total returns with dividends
ORCL5/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
Tied
—
Income & Cash Flow (Last 12 Months)
MSFT leads this category, winning 3 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
MSFT is the larger business by revenue, generating $318.3B annually — 527.6x MGIC's $603M. MSFT is the more profitable business, keeping 39.3% of every revenue dollar as net income compared to MGIC's 6.6%. On growth, ORCL holds the edge at +21.7% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | MGICMagic Software En… | MSFTMicrosoft Corpora… | ORCLOracle Corporation | SAPSAP SE |
|---|---|---|---|---|
| RevenueTrailing 12 months | $603M | $318.3B | $64.1B | $36.8B |
| EBITDAEarnings before interest/tax | $87M | $192.6B | $26.5B | $11.2B |
| Net IncomeAfter-tax profit | $40M | $125.2B | $16.2B | $7.0B |
| Free Cash FlowCash after capex | $64M | $72.9B | -$24.7B | $8.4B |
| Gross MarginGross profit ÷ Revenue | +28.0% | +68.3% | +66.4% | +73.8% |
| Operating MarginEBIT ÷ Revenue | +10.8% | +46.8% | +30.8% | +26.7% |
| Net MarginNet income ÷ Revenue | +6.6% | +39.3% | +25.3% | +19.1% |
| FCF MarginFCF ÷ Revenue | +10.7% | +22.9% | -38.6% | +22.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | +13.1% | +18.3% | +21.7% | +3.3% |
| EPS Growth (YoY)Latest quarter vs prior year | +17.6% | +23.4% | +24.5% | +15.4% |
MSFT leads this category, winning 3 of 6 comparable metrics.
Valuation Metrics
MGIC leads this category, winning 7 of 7 comparable metrics.
Valuation Metrics
At 23.2x trailing earnings, MGIC trades at a 49% valuation discount to ORCL's 45.1x P/E. Adjusting for growth (PEG ratio), MGIC offers better value at 0.98x vs ORCL's 6.36x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | MGICMagic Software En… | MSFTMicrosoft Corpora… | ORCLOracle Corporation | SAPSAP SE |
|---|---|---|---|---|
| Market CapShares × price | $853M | $3.08T | $563.3B | $202.4B |
| Enterprise ValueMkt cap + debt − cash | $827M | $3.17T | $656.6B | $202.2B |
| Trailing P/EPrice ÷ TTM EPS | 23.17x | 30.43x | 45.15x | 24.71x |
| Forward P/EPrice ÷ next-FY EPS est. | 14.98x | 24.77x | 26.18x | 23.68x |
| PEG RatioP/E ÷ EPS growth rate | 0.98x | 1.62x | 6.36x | 3.74x |
| EV / EBITDAEnterprise value multiple | 10.07x | 19.46x | 27.53x | 15.47x |
| Price / SalesMarket cap ÷ Revenue | 1.54x | 10.94x | 9.81x | 4.69x |
| Price / BookPrice ÷ Book value/share | 2.83x | 9.02x | 26.78x | 3.85x |
| Price / FCFMarket cap ÷ FCF | 11.64x | 43.06x | — | 21.73x |
MGIC leads this category, winning 7 of 7 comparable metrics.
Profitability & Efficiency
MSFT leads this category, winning 4 of 9 comparable metrics.
Profitability & Efficiency
ORCL delivers a 56.3% return on equity — every $100 of shareholder capital generates $56 in annual profit, vs $13 for MGIC. SAP carries lower financial leverage with a 0.18x debt-to-equity ratio, signaling a more conservative balance sheet compared to ORCL's 4.96x. On the Piotroski fundamental quality scale (0–9), SAP scores 9/9 vs MGIC's 4/9, reflecting strong financial health.
| Metric | MGICMagic Software En… | MSFTMicrosoft Corpora… | ORCLOracle Corporation | SAPSAP SE |
|---|---|---|---|---|
| ROE (TTM)Return on equity | +13.4% | +33.1% | +56.3% | +15.7% |
| ROA (TTM)Return on assets | +7.4% | +19.2% | +8.1% | +9.7% |
| ROICReturn on invested capital | +16.2% | +24.9% | +12.8% | +16.0% |
| ROCEReturn on capital employed | +16.3% | +29.7% | +14.4% | +18.2% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 6 | 6 | 9 |
| Debt / EquityFinancial leverage | 0.29x | 0.33x | 4.96x | 0.18x |
| Net DebtTotal debt minus cash | -$27M | $81.9B | $93.3B | -$149M |
| Cash & Equiv.Liquid assets | $113M | $30.2B | $10.8B | $8.2B |
| Total DebtShort + long-term debt | $86M | $112.2B | $104.1B | $8.1B |
| Interest CoverageEBIT ÷ Interest expense | 11.90x | 55.65x | 5.44x | 8.49x |
MSFT leads this category, winning 4 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
ORCL leads this category, winning 5 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in ORCL five years ago would be worth $25,437 today (with dividends reinvested), compared to $12,306 for MGIC. Over the past 12 months, ORCL leads with a +31.7% total return vs SAP's -38.9%. The 3-year compound annual growth rate (CAGR) favors ORCL at 27.6% vs SAP's 10.7% — a key indicator of consistent wealth creation.
| Metric | MGICMagic Software En… | MSFTMicrosoft Corpora… | ORCLOracle Corporation | SAPSAP SE |
|---|---|---|---|---|
| YTD ReturnYear-to-date | -33.3% | -12.0% | +0.6% | -25.2% |
| 1-Year ReturnPast 12 months | +23.7% | -4.5% | +31.7% | -38.9% |
| 3-Year ReturnCumulative with dividends | +36.5% | +37.6% | +107.9% | +35.8% |
| 5-Year ReturnCumulative with dividends | +23.1% | +73.8% | +154.4% | +35.6% |
| 10-Year ReturnCumulative with dividends | +222.0% | +776.0% | +428.7% | +151.5% |
| CAGR (3Y)Annualised 3-year return | +10.9% | +11.2% | +27.6% | +10.7% |
ORCL leads this category, winning 5 of 6 comparable metrics.
Risk & Volatility
Evenly matched — MSFT and SAP each lead in 1 of 2 comparable metrics.
Risk & Volatility
SAP is the less volatile stock with a 0.85 beta — it tends to amplify market swings less than ORCL's 1.58 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. MSFT currently trades 74.7% from its 52-week high vs SAP's 55.4% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | MGICMagic Software En… | MSFTMicrosoft Corpora… | ORCLOracle Corporation | SAPSAP SE |
|---|---|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.44x | 0.85x | 1.58x | 0.85x |
| 52-Week HighHighest price in past year | $28.00 | $555.45 | $345.72 | $313.28 |
| 52-Week LowLowest price in past year | $14.31 | $356.28 | $134.57 | $160.68 |
| % of 52W HighCurrent price vs 52-week peak | +62.1% | +74.7% | +56.7% | +55.4% |
| RSI (14)Momentum oscillator 0–100 | 30.7 | 57.9 | 68.7 | 50.8 |
| Avg Volume (50D)Average daily shares traded | 46K | 32.5M | 26.3M | 3.4M |
Evenly matched — MSFT and SAP each lead in 1 of 2 comparable metrics.
Analyst Outlook
Evenly matched — MSFT and SAP each lead in 1 of 2 comparable metrics.
Analyst Outlook
Analyst consensus: MGIC as "Buy", MSFT as "Buy", ORCL as "Buy", SAP as "Buy". Consensus price targets imply 125.5% upside for SAP (target: $392) vs 6.4% for MGIC (target: $19). For income investors, SAP offers the higher dividend yield at 1.51% vs MSFT's 0.78%.
| Metric | MGICMagic Software En… | MSFTMicrosoft Corpora… | ORCLOracle Corporation | SAPSAP SE |
|---|---|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy | Buy | Buy |
| Price TargetConsensus 12-month target | $18.50 | $556.88 | $257.09 | $391.67 |
| # AnalystsCovering analysts | 6 | 81 | 86 | 43 |
| Dividend YieldAnnual dividend ÷ price | +1.2% | +0.8% | +0.8% | +1.5% |
| Dividend StreakConsecutive years of raises | 0 | 19 | 18 | 2 |
| Dividend / ShareAnnual DPS | $0.20 | $3.23 | $1.65 | $2.24 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +0.6% | +0.3% | +1.1% |
Evenly matched — MSFT and SAP each lead in 1 of 2 comparable metrics.
Key Takeaway
MSFT leads in 2 of 6 categories (Income & Cash Flow, Profitability & Efficiency). MGIC leads in 1 (Valuation Metrics). 2 tied.
Best OverallMicrosoft Corporation (MSFT)Leads 2 of 6 categories
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MGIC vs MSFT vs ORCL vs SAP: Key Questions Answered
10 questions · data-driven answers · updated daily
01Is MGIC or MSFT or ORCL or SAP a better buy right now?
For growth investors, Microsoft Corporation (MSFT) is the stronger pick with 14.
9% 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 MSFT or ORCL or SAP?
On trailing P/E, Magic Software Enterprises Ltd.
(MGIC) is the cheapest at 23. 2x versus Oracle Corporation at 45. 1x. On forward P/E, Magic Software Enterprises Ltd. is actually cheaper at 15. 0x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Magic Software Enterprises Ltd. wins at 0. 63x versus Oracle Corporation's 3. 69x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — MGIC or MSFT or ORCL or SAP?
Over the past 5 years, Oracle Corporation (ORCL) delivered a total return of +154.
4%, compared to +23. 1% for Magic Software Enterprises Ltd. (MGIC). Over 10 years, the gap is even starker: MSFT returned +776. 0% versus SAP's +151. 5%. 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 MSFT or ORCL or SAP?
By beta (market sensitivity over 5 years), SAP SE (SAP) is the lower-risk stock at 0.
85β versus Oracle Corporation's 1. 58β — meaning ORCL is approximately 87% more volatile than SAP relative to the S&P 500. On balance sheet safety, SAP SE (SAP) carries a lower debt/equity ratio of 18% versus 5% for Oracle Corporation — giving it more financial flexibility in a downturn.
05Which is growing faster — MGIC or MSFT or ORCL or SAP?
By revenue growth (latest reported year), Microsoft Corporation (MSFT) is pulling ahead at 14.
9% versus 3. 3% for Magic Software Enterprises Ltd. (MGIC). On earnings-per-share growth, the picture is similar: SAP SE grew EPS 126. 0% year-over-year, compared to 0. 0% for Magic Software Enterprises Ltd.. Over a 3-year CAGR, MSFT leads at 12. 4% 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 MSFT or ORCL or SAP?
Microsoft Corporation (MSFT) is the more profitable company, earning 36.
1% net margin versus 6. 7% for Magic Software Enterprises Ltd. — meaning it keeps 36. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MSFT leads at 45. 6% versus 11. 1% for MGIC. At the gross margin level — before operating expenses — SAP leads at 73. 8%, 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 MSFT or ORCL or SAP more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.
By this metric, Magic Software Enterprises Ltd. (MGIC) is the more undervalued stock at a PEG of 0. 63x versus Oracle Corporation's 3. 69x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Magic Software Enterprises Ltd. (MGIC) trades at 15. 0x forward P/E versus 26. 2x for Oracle Corporation — 11. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for SAP: 125. 5% to $391. 67.
08Which pays a better dividend — MGIC or MSFT or ORCL or SAP?
All stocks in this comparison pay dividends.
SAP SE (SAP) offers the highest yield at 1. 5%, versus 0. 8% for Microsoft Corporation (MSFT).
09Is MGIC or MSFT or ORCL or SAP better for a retirement portfolio?
For long-horizon retirement investors, Microsoft Corporation (MSFT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
85), 0. 8% yield, +776. 0% 10Y return). Both have compounded well over 10 years (MSFT: +776. 0%, 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 MSFT and ORCL and SAP?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
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% · MSFT: 18.3%)Net Margin>
%
(MGIC: 6.6% · MSFT: 39.3%)P/E Ratio<
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