Opera (NASDAQ:OPRA – Get Rating) and Magic Software Enterprises (NASDAQ:MGIC – Get Rating) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.
Institutional & Insider Ownership
6.4% of Opera shares are owned by institutional investors. Comparatively, 29.6% of Magic Software Enterprises shares are owned by institutional investors. 4.5% of Magic Software Enterprises shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings & Valuation:
This table compares Opera and Magic Software Enterprises’ top-line revenue, earnings per share and valuation.
| Gross Revenue: | Price/Sales Ratio: | Net Income: | Earnings Per Share: | Price/Earnings Ratio: | |
| Opera: | $251.46 million | 2:08 a.m | -$43.96 million | ($0.23) | -19.78: |
| Magic Software Enterprises | $480.33 million | 1.82: | $29.33 million | $0.56 | 31.73: |
Magic Software Enterprises has higher revenue and earnings than Opera. Opera is trading at a lower price-to-earnings ratio than Magic Software Enterprises, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings:
This is a breakdown of recent recommendations for Opera and Magic Software Enterprises, as reported by MarketBeat.
| Sell Ratings: | Hold Ratings: | Buy Ratings: | Strong Buy Ratings: | Rating Score: | |
| Opera: | 0: | 0: | 0: | 0: | N/A |
| Magic Software Enterprises | 0: | 0: | 0: | 0: | N/A |
Opera currently has a consensus price target of $12.00, suggesting a potential upside of 163.74%. Given Opera’s higher possible upside, equities analysts clearly believe Opera is more favorable than Magic Software Enterprises.
Volatility & Risk:
Opera has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, Magic Software Enterprises has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500.
Profitability:
This table compares Opera and Magic Software Enterprises’ net margins, return on equity and return on assets.
| Net Margins: | Return on Equity: | Return on Assets: | |
| Opera: | -9.53% | -1.44% | -1.34% |
| Magic Software Enterprises | 5.35% | 17.84% | 10.14% |
Summary:
Magic Software Enterprises beats Opera on 10 of the 12 factors compared between the two stocks.
About Opera: (Get Rating)
Opera Limited, together with its subsidiaries, provides mobile and PC web browsers. It operates in two segments, Browser and News, and Other. The company offers mobile browser products, such as Opera Mini, Opera for Android and iOS, Opera GX Mobile, and Opera Touch; PC browsers, including Opera for Computers and Opera GX; and Opera News, an AI-powered personalized news discovery and aggregation service. It also provides browser-based cashback rewards under the Dify brand name; owns GameMaker Studio, a 2D gaming development platform; and GXC, a gaming portal. In addition, the company operates online marketing platforms, including Opera Ads, an online advertising platform; and Opera Ads Manager, designs to create, manage, and report on digital advertising campaigns in one place allowing advertisers to reach customers. It operates in Ireland, Singapore, Russia, and internationally. The company was founded in 1995 and is headquartered in Oslo, Norway. Opera Limited is a subsidiary of Kunlun Tech Limited.
About Magic Software Enterprises: (Get Rating)
Magic Software Enterprises Ltd. provides proprietary application development, business process integration, vertical software solutions, and information technologies (IT) outsourcing software services in Israel and internationally. The company’s Software Services segment develops, markets, sells, and supports application platforms, software applications, and business and process integration solutions and related services. Its 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. The company offers proprietary application platforms, such as Magic xpa for developing and deploying business applications; AppBuilder for building, deploying, and maintaining high-end and mainframe-grade business applications; Magic xpi for application integration; FactoryEye for virtualization of production data; BusinessEye for organizational business intelligence; and Magic SmartUX for cross-platform mobile business applications. It also provides vertical software solutions including 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, the company 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. Magic Software Enterprises Ltd. was incorporated in 1983 and is headquartered in Or Yehuda, Israel.
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