As Application Software companies, Gridsum Holding Inc. (NASDAQ:GSUM) and Magic Software Enterprises Ltd. (NASDAQ:MGIC) are our subject to contrast. And more specifically their institutional ownership, analyst recommendations, profitability, risk, dividends, earnings and valuation.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gridsum Holding Inc. | 3 | 0.00 | N/A | -2.48 | 0.00 |
| Magic Software Enterprises Ltd. | 9 | 1.56 | N/A | 0.43 | 20.86 |
Table 1 demonstrates Gridsum Holding Inc. and Magic Software Enterprises Ltd.’s top-line revenue, earnings per share (EPS) and valuation.
Profitability
Table 2 provides the return on assets, return on equity and net margins of the two firms.
| Net Margins | Return on Equity | Return on Assets | |
| Gridsum Holding Inc. | 0.00% | -127.4% | -42.8% |
| Magic Software Enterprises Ltd. | 0.00% | 8.8% | 5.6% |
Liquidity
The Current Ratio and Quick Ratio of Gridsum Holding Inc. are 0.9 and 0.9 respectively. Its competitor Magic Software Enterprises Ltd.’s Current Ratio is 4 and its Quick Ratio is 4. Magic Software Enterprises Ltd. can pay off short and long-term obligations better than Gridsum Holding Inc.
Analyst Ratings
The table given features the ratings and recommendations for Gridsum Holding Inc. and Magic Software Enterprises Ltd.
| Sell Ratings | Hold Ratings | Buy Ratings | Rating Score | |
| Gridsum Holding Inc. | 0 | 0 | 0 | 0.00 |
| Magic Software Enterprises Ltd. | 0 | 0 | 2 | 3.00 |
Competitively Magic Software Enterprises Ltd. has an average target price of $10.5, with potential upside of 17.06%.
Institutional & Insider Ownership
Roughly 36.4% of Gridsum Holding Inc. shares are owned by institutional investors while 20.6% of Magic Software Enterprises Ltd. are owned by institutional investors. About 5.3% of Gridsum Holding Inc.’s share are owned by insiders. Insiders Comparatively, owned 58.1% of Magic Software Enterprises Ltd. shares.
Performance
Here are the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.
| Performance (W) | Performance (M) | Performance (Q) | Performance (HY) | Performance (Y) | Performance (YTD) | |
| Gridsum Holding Inc. | -6.17% | 10.06% | 11.11% | -26.78% | -43.37% | 56.95% |
| Magic Software Enterprises Ltd. | -1.68% | -3.28% | 6.94% | 2.39% | 10.66% | 16.75% |
For the past year Gridsum Holding Inc.’s stock price has bigger growth than Magic Software Enterprises Ltd.
Summary
Magic Software Enterprises Ltd. beats Gridsum Holding Inc. on 8 of the 9 factors.
Gridsum Holding Inc. provides data analysis software for multinational and domestic enterprises, and government agencies in China. Its proprietary distributed data architecture allows its customers to collect and analyze vast amounts of information; and Gridsum Big Data platform performs multi-dimensional correlation analysis and analyzes complex real-time events. The company offers Web Dissector to analyze customer Websites by monitoring and analyzing key performance indicators; Mobile Dissector to understand mobile app user activity; SEM Dissector for search engine marketing; SEO Dissector, a search engine optimization tool; Ad Dissector, an advertisement performance monitoring and optimization product; Contribution Dissector to evaluate the performance of advertising campaigns; Audience Dissector, an audience analysis product; Recommendation Engine, a data driven content recommendation solution. It also provides Government Web Dissector, a digital intelligence solution; Government Website Group Integrated Management Platform, an integrated management platform; Streaming Dissector, a real-time viewership analysis and operational efficiency monitor for digital online video; Video Dissector, an online video content analytics tool; TV Dissector, an analytics tool; Rating Plus, a television viewing data analytics tool; and Media Dissector, a mass, social, and user-generated content media monitoring and analytics tool. In addition, the company offers Law Dissector, a search and statistical analysis tool; Smart Push, a legal research tool; Information Dissector, an insightful analytical system; Social Listening, a could-based social listening solution; Gridsum Dashboard, a data visualization tool; and Gridsum Report Center, an automated report generation and distribution tool. Further, it develops new media analytics and information discovery solutions to address a range of customer needs. The company was founded in 2005 and is headquartered in Beijing, China.
Magic Software Enterprises Ltd. provides proprietary application development, business process integration, and vertical software solutions and related professional services in Israel and internationally. The companyÂ’s Software Solutions segment develops, markets, sells, and supports a proprietary and none proprietary application platform, 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, and communications services and solutions, as well as supplemental outsourcing services. The company offers Magic xpa, a proprietary application platform for developing and deploying business applications; AppBuilder application platform for building, deploying, and maintaining mainframe-grade business applications; and Magic xpi integration platform, a graphical wizard-based code-free solution. It also provides vertical software solutions comprising Clicks, a software solution for healthcare providers; Leap, a software solution for business support systems; Hermes Solution for both hubs and traditional air cargo ground handling operations; HR Pulse, a customized single-tenant software as a service tool that helps organizations to create new human capital management solutions; and MBS Solution, a proprietary system for managing TV broadcast channels. In addition, it provides software maintenance, support, training, and consulting services. It serves oil and gas, telecommunications, financial, healthcare, industrial sectors, as well as public institutions and international agencies. 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 founded in 1983 and is headquartered in Or Yehuda, Israel.
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