MGIC vs PCTY vs NOW vs MNDY

For growth investors, monday.

com Ltd. (MNDY) is the stronger pick with 26. 7% 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.

On trailing P/E, Magic Software Enterprises Ltd.

(MGIC) is the cheapest at 23. 2x versus ServiceNow, Inc. at 54. 6x. On forward P/E, Paylocity Holding Corporation is actually cheaper at 14. 3x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: ServiceNow, Inc. wins at 0. 32x versus Magic Software Enterprises Ltd. 's 0. 63x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Magic Software Enterprises Ltd.

(MGIC) delivered a total return of +23. 1%, compared to -80. 5% for ServiceNow, Inc. (NOW). Over 10 years, the gap is even starker: PCTY returned +223. 7% versus MNDY's -59. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Paylocity Holding Corporation (PCTY) is the lower-risk stock at 0.

39β versus Magic Software Enterprises Ltd. 's 1. 44β — meaning MGIC is approximately 268% more volatile than PCTY relative to the S&P 500. On balance sheet safety, Paylocity Holding Corporation (PCTY) carries a lower debt/equity ratio of 18% versus 29% for Magic Software Enterprises Ltd. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), monday.

com Ltd. (MNDY) is pulling ahead at 26. 7% versus 3. 3% for Magic Software Enterprises Ltd. (MGIC). On earnings-per-share growth, the picture is similar: monday. com Ltd. grew EPS 261. 3% year-over-year, compared to 0. 0% for Magic Software Enterprises Ltd.. Over a 3-year CAGR, MNDY leads at 33. 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.

Paylocity Holding Corporation (PCTY) is the more profitable company, earning 14.

2% net margin versus 6. 7% for Magic Software Enterprises Ltd. — meaning it keeps 14. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PCTY leads at 19. 1% versus -0. 1% for MNDY. At the gross margin level — before operating expenses — MNDY leads at 89. 2%, 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.

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, ServiceNow, Inc. (NOW) is the more undervalued stock at a PEG of 0. 32x versus Magic Software Enterprises Ltd. 's 0. 63x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Paylocity Holding Corporation (PCTY) trades at 14. 3x forward P/E versus 21. 9x for ServiceNow, Inc. — 7. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for MNDY: 84. 5% to $133. 00.

In this comparison, MGIC (1.

2% yield) pays a dividend. PCTY, NOW, MNDY do not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Paylocity Holding Corporation (PCTY) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

39), +223. 7% 10Y return). Both have compounded well over 10 years (PCTY: +223. 7%, NOW: +35. 2%), 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.

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; PCTY is a small-cap quality compounder stock; NOW is a mid-cap high-growth stock; MNDY is a small-cap high-growth stock. MGIC pays a dividend while PCTY, NOW, MNDY do 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.