The Descartes Systems Group (DSGX) vs. Its Rivals Financial Contrast

The Descartes Systems Group (NASDAQ:DSGX) is one of 953 public companies in the “Software” industry, but how does it contrast to its peers? We will compare The Descartes Systems Group to similar businesses based on the strength of its risk, institutional ownership, earnings, analyst recommendations, valuation, profitability and dividends.

Valuation and Earnings

This table compares The Descartes Systems Group and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
The Descartes Systems Group	$728.99 million	$163.77 million	43.92
The Descartes Systems Group Competitors	$1.79 billion	$385.91 million	106.60

The Descartes Systems Group’s peers have higher revenue and earnings than The Descartes Systems Group. The Descartes Systems Group is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of recent recommendations and price targets for The Descartes Systems Group and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Descartes Systems Group	0	3	11	1	2.87
The Descartes Systems Group Competitors	5746	21522	44878	1496	2.57

The Descartes Systems Group currently has a consensus price target of $100.33, suggesting a potential upside of 6.75%. As a group, “Software” companies have a potential upside of 28.93%. Given The Descartes Systems Group’s peers higher possible upside, analysts plainly believe The Descartes Systems Group has less favorable growth aspects than its peers.

Risk and Volatility

The Descartes Systems Group has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, The Descartes Systems Group’s peers have a beta of 1.34, suggesting that their average stock price is 34% more volatile than the S&P 500.

Profitability

This table compares The Descartes Systems Group and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The Descartes Systems Group	24.25%	11.66%	9.90%
The Descartes Systems Group Competitors	-612.64%	20.88%	-8.99%

Institutional & Insider Ownership

77.7% of The Descartes Systems Group shares are owned by institutional investors. Comparatively, 41.8% of shares of all “Software” companies are owned by institutional investors. 0.3% of The Descartes Systems Group shares are owned by insiders. Comparatively, 19.9% of shares of all “Software” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

The Descartes Systems Group peers beat The Descartes Systems Group on 7 of the 13 factors compared.

About The Descartes Systems Group

The Descartes Systems Group Inc. provides cloud-based logistics and supply chain management solutions worldwide. Its Logistics Technology platform offers a range of modular, interoperable web and wireless logistics management solutions. The company provides a suite of solutions that include routing, mobile, and telematics; transportation management; ecommerce, shipping, and fulfillment; customs and regulatory compliance; global trade intelligence; broker and forwarder enterprise systems; and B2B messaging and connectivity services. It also offers its customers to use its modular, software-as-a-service, and data solutions to route, schedule, track, and measure delivery resources; plan, allocate, and execute shipments; rate, audit, and pay transportation invoices; access and analyze global trade data; research and perform trade tariff and duty calculations; file customs and security documents for imports and exports; and various other logistics processes. In addition, the company provides consulting, implementation, and training services, as well as maintenance and support services. It serves transportation providers, such as air, ocean, and truck modes; logistics service providers, including third-party logistics providers, freight forwarders, and customs brokers; and distribution-intensive companies, such as manufacturers, retailers, distributors, and mobile business service providers through subscription, transactional or perpetual license basis. The Descartes Systems Group Inc. was incorporated in 1981 and is headquartered in Waterloo, Canada.