Magic Software Enterprises (NASDAQ:MGIC) vs. Prologic Mgmt (OTCMKTS:PRLO) Head to Head Analysis

Magic Software Enterprises (NASDAQ:MGIC) and Prologic Mgmt (OTCMKTS:PRLO) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation and analyst recommendations.

Institutional & Insider Ownership

24.7% of Magic Software Enterprises shares are held by institutional investors. 4.5% of Magic Software Enterprises shares are held by insiders. Comparatively, 31.4% of Prologic Mgmt shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Magic Software Enterprises and Prologic Mgmt”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Magic Software Enterprises	$552.52 million	1.81	$36.88 million	$0.78	26.10
Prologic Mgmt	N/A	N/A	N/A	N/A	N/A

Magic Software Enterprises has higher revenue and earnings than Prologic Mgmt.

Profitability

This table compares Magic Software Enterprises and Prologic Mgmt’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Magic Software Enterprises	6.58%	15.85%	8.89%
Prologic Mgmt	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent recommendations for Magic Software Enterprises and Prologic Mgmt, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magic Software Enterprises	0	1	1	0	2.50
Prologic Mgmt	0	0	0	0	0.00

Magic Software Enterprises currently has a consensus price target of $18.00, indicating a potential downside of 11.59%. Given Prologic Mgmt’s higher probable upside, analysts plainly believe Prologic Mgmt is more favorable than Magic Software Enterprises.

Summary

Magic Software Enterprises beats Prologic Mgmt on 7 of the 9 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. Its Software Services segment develops, markets, sells, and supports application platform, software applications, and business and process integration solutions and related services. The company’s 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. The company 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, It 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 Prologic Mgmt

Prologic Management Systems, Inc. does not have significant operations. Prior to February 2004, the company provided systems integration services, technology products, and related services. Prologic Management Systems was co-founded by James M. Heim in 1984. The company is based in Tucson, Arizona.