Critical Analysis: Rubrik (NYSE:RBRK) vs. Magic Software Enterprises (NASDAQ:MGIC)

Rubrik (NYSE:RBRK) and Magic Software Enterprises (NASDAQ:MGIC) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, valuation and dividends.

Earnings and Valuation

This table compares Rubrik and Magic Software Enterprises”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rubrik	$803.46 million	16.26	-$354.16 million	N/A	N/A
Magic Software Enterprises	$535.48 million	1.27	$37.03 million	$0.70	19.83

Magic Software Enterprises has lower revenue, but higher earnings than Rubrik.

Analyst Ratings

This is a summary of current ratings and target prices for Rubrik and Magic Software Enterprises, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rubrik	0	2	17	2	3.00
Magic Software Enterprises	0	1	1	0	2.50

Rubrik presently has a consensus target price of $69.78, suggesting a potential downside of 1.08%. Magic Software Enterprises has a consensus target price of $16.00, suggesting a potential upside of 15.27%. Given Magic Software Enterprises’ higher probable upside, analysts plainly believe Magic Software Enterprises is more favorable than Rubrik.

Insider & Institutional Ownership

49.5% of Rubrik shares are held by institutional investors. Comparatively, 24.7% of Magic Software Enterprises shares are held by institutional investors. 4.5% of Magic Software Enterprises shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rubrik	-141.57%	N/A	-100.28%
Magic Software Enterprises	6.49%	15.42%	8.66%

About Rubrik

Rubrik, Inc. provides data security solutions to individuals and businesses worldwide. The company offers enterprise data protection, unstructured data protection, cloud data protection, and SaaS data protection solutions; data threat analytics; data security posture; and cyber recovery solutions. It serves financial, retail, trade, transportation, energy, industrial, healthcare and life science, education, technology, media, communications, and public sectors. Rubrik, Inc. was formerly known as Scaledata, Inc. and changed its name to Rubrik, Inc. in October 2014. The company was incorporated in 2013 and is based in Palo Alto, California.

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.