WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Infosys Ltd ADR generates 3265% more annual revenue ($20.30B 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

59

out of 100

Grade: C

Growth: 4.7Profit: 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 (+83.8%)

Margin of Safety

+83.8%

Fair Value

$97.19

Current Price

$11.07

$86.12 discount

UndervaluedFair: $97.19Overvalued

Intrinsic value data unavailable for MGIC.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

INFY5 strengths · Avg: 9.2/10
Return on EquityProfitability
34.6%10/10

Every $100 of equity generates 35 in profit

Debt/EquityHealth
0.1010/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.5710/10

Safe zone — low bankruptcy risk

P/E RatioValuation
13.5x8/10

Attractively priced relative to earnings

Operating MarginProfitability
21.2%8/10

Strong operational efficiency at 21.2%

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

Growing faster than its price suggests

Areas to Watch

INFY3 concerns · Avg: 4.0/10
PEG RatioValuation
1.854/10

Expensive relative to growth rate

Price/BookValuation
9.3x4/10

Trading at 9.3x book value

Revenue GrowthGrowth
2.9%4/10

2.9% revenue growth

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 21.2%.

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, Revenue Growth.

Bear Case : MGIC

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

Key Dynamics to Monitor

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 (970M), providing more financial flexibility.

Monitor INFORMATION TECHNOLOGY SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

INFY scores higher overall (59/100 vs 59/100), backed by strong 16.4% margins. 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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