CRNC vs. MGIC, MKTW, CCSI, XPER, MIXT, LAW, AMSWA, BBAI, MYPS, and CTV
Should you be buying Cerence stock or one of its competitors? The main competitors of Cerence include Magic Software Enterprises (MGIC), MarketWise (MKTW), Consensus Cloud Solutions (CCSI), Xperi (XPER), MiX Telematics (MIXT), CS Disco (LAW), American Software (AMSWA), BigBear.ai (BBAI), PLAYSTUDIOS (MYPS), and Innovid (CTV). These companies are all part of the "prepackaged software" industry.
Magic Software Enterprises (NASDAQ:MGIC) and Cerence (NASDAQ:CRNC) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, dividends, media sentiment, analyst recommendations, institutional ownership, community ranking, risk and valuation.
Magic Software Enterprises presently has a consensus target price of $14.00, indicating a potential upside of 35.79%. Cerence has a consensus target price of $10.08, indicating a potential upside of 231.69%. Given Magic Software Enterprises' higher possible upside, analysts clearly believe Cerence is more favorable than Magic Software Enterprises.
In the previous week, Cerence had 2 more articles in the media than Magic Software Enterprises. MarketBeat recorded 2 mentions for Cerence and 0 mentions for Magic Software Enterprises. Cerence's average media sentiment score of 1.00 beat Magic Software Enterprises' score of -0.50 indicating that Magic Software Enterprises is being referred to more favorably in the media.
24.7% of Magic Software Enterprises shares are held by institutional investors. Comparatively, 91.4% of Cerence shares are held by institutional investors. 4.5% of Magic Software Enterprises shares are held by company insiders. Comparatively, 1.2% of Cerence shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Magic Software Enterprises has higher revenue and earnings than Cerence. Cerence is trading at a lower price-to-earnings ratio than Magic Software Enterprises, indicating that it is currently the more affordable of the two stocks.
Magic Software Enterprises has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, Cerence has a beta of 2.4, suggesting that its share price is 140% more volatile than the S&P 500.
Magic Software Enterprises received 204 more outperform votes than Cerence when rated by MarketBeat users. Likewise, 60.29% of users gave Magic Software Enterprises an outperform vote while only 57.72% of users gave Cerence an outperform vote.
Magic Software Enterprises has a net margin of 6.83% compared to Magic Software Enterprises' net margin of -80.93%. Cerence's return on equity of 16.36% beat Magic Software Enterprises' return on equity.
Summary
Magic Software Enterprises beats Cerence on 14 of the 18 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding CRNC and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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