Trimble (NASDAQ:TRMB – Get Free Report) and Magic Software Enterprises (NASDAQ:MGIC – Get Free Report) are both technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.
Earnings & Valuation
This table compares Trimble and Magic Software Enterprises”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Trimble | $3.59 billion | 3.89 | $424.00 million | ($0.49) | -122.04 |
| Magic Software Enterprises | $603.22 million | 1.41 | $36.88 million | $0.81 | 21.46 |
Risk & Volatility
Trimble has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500. Comparatively, Magic Software Enterprises has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500.
Profitability
This table compares Trimble and Magic Software Enterprises’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Trimble | -2.77% | 12.29% | 7.67% |
| Magic Software Enterprises | 6.61% | 16.28% | 8.96% |
Analyst Ratings
This is a breakdown of current recommendations and price targets for Trimble and Magic Software Enterprises, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Trimble | 1 | 2 | 8 | 0 | 2.64 |
| Magic Software Enterprises | 0 | 1 | 0 | 0 | 2.00 |
Trimble currently has a consensus target price of $80.00, indicating a potential upside of 33.78%. Given Trimble’s stronger consensus rating and higher possible upside, research analysts clearly believe Trimble is more favorable than Magic Software Enterprises.
Insider & Institutional Ownership
93.2% of Trimble shares are held by institutional investors. Comparatively, 24.7% of Magic Software Enterprises shares are held by institutional investors. 0.6% of Trimble shares are held by insiders. Comparatively, 4.5% of Magic Software Enterprises shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
Trimble beats Magic Software Enterprises on 8 of the 14 factors compared between the two stocks.
About Trimble
Trimble Inc. provides technology solutions that enable professionals and field mobile workers to enhance or transform their work processes worldwide. The company's Buildings and Infrastructure segment offers field and office software for project design and visualization; systems to guide and control construction equipment; software for 3D design and data sharing; systems to monitor, track, and manage assets, equipment, and workers; software to share and communicate data; program management solutions for construction owners; 3D conceptual design and modeling software; building information modeling software; enterprise resource planning, project management, and project collaboration solutions; integrated site layout and measurement systems; cost estimating, scheduling, and project controls solutions; and applications for sub-contractors and trades. Its Geospatial segment provides surveying and geospatial products, and geographic information systems. The company's Resources and Utilities segment offers precision agriculture products and services, such as guidance and positioning systems, including autonomous steering systems, automated and variable-rate application and technology systems, and information management solutions; manual and automated navigation guidance for tractors and other farm equipment; solutions to automate application of pesticide and seeding; water solutions; and agricultural software. Its Transportation segment offers solutions for long haul trucking and freight shipper markets; mobility solutions comprising route management, safety and compliance, end-to-end vehicle management, video intelligence, and supply chain communications; and fleet and transportation management systems, analytics, routing, mapping, reporting, and predictive modeling solutions. The company was formerly known as Trimble Navigation Limited and changed its name to Trimble Inc. in October 2016. Trimble Inc. was founded in 1978 and is headquartered in Westminster, Colorado.
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.
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