WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Infosys Ltd ADR generates 3190% more annual revenue ($19.85B vs $603.22M). INFY leads profitability with a 16.2% profit margin vs 6.6%. MGIC appears more attractively valued with a PEG of 1.08. MGIC earns a higher WallStSmart Score of 57/100 (C).

INFY

Hold

48

out of 100

Grade: D+

Growth: 4.0Profit: 9.0Value: 7.3Quality: 5.0

MGIC

Buy

57

out of 100

Grade: C

Growth: 6.0Profit: 6.0Value: 9.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

INFYSignificantly Overvalued (-200.8%)

Margin of Safety

-200.8%

Fair Value

$5.24

Current Price

$13.08

$7.84 premium

UndervaluedFair: $5.24Overvalued
MGICUndervalued (+29.8%)

Margin of Safety

+29.8%

Fair Value

$28.67

Current Price

$17.38

$11.29 discount

UndervaluedFair: $28.67Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

INFY3 strengths · Avg: 9.0/10
Return on EquityProfitability
32.7%10/10

Every $100 of equity generates 33 in profit

Market CapQuality
$53.86B9/10

Large-cap with strong market position

P/E RatioValuation
17.0x8/10

Attractively priced relative to earnings

MGIC0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

INFY3 concerns · Avg: 3.3/10
PEG RatioValuation
2.224/10

Expensive relative to growth rate

Revenue GrowthGrowth
3.2%4/10

3.2% revenue growth

EPS GrowthGrowth
-5.3%2/10

Earnings declined 5.3%

MGIC2 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

Comparative Analysis Report

WallStSmart Research

Bull Case : INFY

The strongest argument for INFY centers on Return on Equity, Market Cap, P/E Ratio. Profitability is solid with margins at 16.2% and operating margin at 18.0%.

Bull Case : MGIC

Revenue growth of 13.1% demonstrates continued momentum. PEG of 1.08 suggests the stock is reasonably priced for its growth.

Bear Case : INFY

The primary concerns for INFY are PEG Ratio, Revenue Growth, EPS Growth.

Bear Case : MGIC

The primary concerns for MGIC are Market Cap, Profit Margin.

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 (924M), providing more financial flexibility.

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

Bottom Line

MGIC scores higher overall (57/100 vs 48/100) 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.

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.

Want to dig deeper into these stocks?