WallStSmart

Infosys Ltd ADR (INFY)vsMagic Software Enterprises Ltd (MGIC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Infosys Ltd ADR generates 3242% more annual revenue ($20.16B vs $603.22M). INFY leads profitability with a 16.4% profit margin vs 6.6%. MGIC appears more attractively valued with a PEG of 0.73. MGIC earns a higher WallStSmart Score of 59/100 (C).

INFY

Buy

58

out of 100

Grade: C

Growth: 5.3Profit: 9.0Value: 7.3Quality: 8.0
Piotroski: 4/9Altman Z: 4.57

MGIC

Buy

59

out of 100

Grade: C

Growth: 6.0Profit: 5.5Value: 6.3Quality: 6.0
Piotroski: 2/9Altman Z: 2.67
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

INFYUndervalued (+84.2%)

Margin of Safety

+84.2%

Fair Value

$99.78

Current Price

$12.40

$87.38 discount

UndervaluedFair: $99.78Overvalued

Intrinsic value data unavailable for MGIC.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

INFY6 strengths · Avg: 9.2/10
Return on EquityProfitability
33.9%10/10

Every $100 of equity generates 34 in profit

Debt/EquityHealth
0.1010/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.5710/10

Safe zone — low bankruptcy risk

Market CapQuality
$52.96B9/10

Large-cap with strong market position

P/E RatioValuation
16.4x8/10

Attractively priced relative to earnings

Operating MarginProfitability
20.9%8/10

Strong operational efficiency at 20.9%

MGIC1 strengths · Avg: 8.0/10
PEG RatioValuation
0.738/10

Growing faster than its price suggests

Areas to Watch

INFY2 concerns · Avg: 4.0/10
PEG RatioValuation
2.384/10

Expensive relative to growth rate

Price/BookValuation
10.2x4/10

Trading at 10.2x book value

MGIC3 concerns · Avg: 3.0/10
Market CapQuality
$853.35M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
6.6%3/10

6.6% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : INFY

The strongest argument for INFY centers on Return on Equity, Debt/Equity, Altman Z-Score. Profitability is solid with margins at 16.4% and operating margin at 20.9%.

Bull Case : MGIC

The strongest argument for MGIC centers on PEG Ratio. Revenue growth of 13.1% demonstrates continued momentum. PEG of 0.73 suggests the stock is reasonably priced for its growth.

Bear Case : INFY

The primary concerns for INFY are PEG Ratio, Price/Book.

Bear Case : MGIC

The primary concerns for MGIC are Market Cap, Profit Margin, Piotroski F-Score.

Key Dynamics to Monitor

INFY profiles as a mature stock while MGIC is a value play — different risk/reward profiles.

MGIC carries more volatility with a beta of 0.75 — expect wider price swings.

MGIC is growing revenue faster at 13.1% — sustainability is the question.

INFY generates stronger free cash flow (833M), providing more financial flexibility.

Bottom Line

MGIC scores higher overall (59/100 vs 58/100) and 13.1% revenue growth. INFY offers better value entry with a 84.2% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Infosys Ltd ADR

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA

Infosys Limited offers next generation digital consulting, technology, outsourcing and services in North America, Europe, India and internationally. The company is headquartered in Bengaluru, India.

Magic Software Enterprises Ltd

TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA

Magic Software Enterprises Ltd. provides proprietary application development, business process integration, vertical software solutions, and information technology (IT) outsourcing software services in Israel and internationally. The company is headquartered in Or Yehuda, Israel.

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