Magic Software Enterprises Ltd (MGIC)vsSonos Inc (SONO)
MGIC
Magic Software Enterprises Ltd
$17.38
0.00%
TECHNOLOGY · Cap: $853.35M
SONO
Sonos Inc
$15.08
-7.20%
TECHNOLOGY · Cap: $1.83B
Smart Verdict
WallStSmart Research — data-driven comparison
Sonos Inc generates 142% more annual revenue ($1.46B vs $603.22M). MGIC leads profitability with a 6.6% profit margin vs 1.6%. MGIC trades at a lower P/E of 21.2x. MGIC earns a higher WallStSmart Score of 59/100 (C).
MGIC
Buy59
out of 100
Grade: C
SONO
Hold45
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for MGIC.
Margin of Safety
-34.6%
Fair Value
$12.26
Current Price
$15.08
$2.82 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Earnings expanding 87.5% YoY
Conservative balance sheet, low leverage
Areas to Watch
Smaller company, higher risk/reward
6.6% margin — thin
Weak financial health signals
Smaller company, higher risk/reward
ROE of 6.2% — below average capital efficiency
1.6% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : SONO
The strongest argument for SONO centers on EPS Growth, Debt/Equity.
Bear Case : MGIC
The primary concerns for MGIC are Market Cap, Profit Margin, Piotroski F-Score.
Bear Case : SONO
The primary concerns for SONO are Market Cap, Return on Equity, Profit Margin. A P/E of 90.3x leaves little room for execution misses. Thin 1.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
SONO carries more volatility with a beta of 1.94 — expect wider price swings.
MGIC is growing revenue faster at 13.1% — sustainability is the question.
MGIC generates stronger free cash flow (19M), providing more financial flexibility.
Monitor INFORMATION TECHNOLOGY SERVICES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MGIC scores higher overall (59/100 vs 45/100) and 13.1% revenue growth. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
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.
Sonos Inc
TECHNOLOGY · CONSUMER ELECTRONICS · USA
Sonos, Inc. designs, develops, manufactures, and sells multi-room audio products in the Americas, Europe, the Middle East, Africa, and Asia Pacific. The company is headquartered in Santa Barbara, California.
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