Critical Comparison: Validian (OTCMKTS:VLDI) & The Descartes Systems Group (NASDAQ:DSGX)

The Descartes Systems Group (NASDAQ:DSGX) and Validian (OTCMKTS:VLDI) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, valuation, institutional ownership, dividends and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for The Descartes Systems Group and Validian, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Descartes Systems Group	0	3	11	1	2.87
Validian	0	0	0	0	0.00

The Descartes Systems Group presently has a consensus price target of $102.54, suggesting a potential upside of 27.16%. Given The Descartes Systems Group’s stronger consensus rating and higher possible upside, equities analysts plainly believe The Descartes Systems Group is more favorable than Validian.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
The Descartes Systems Group	23.35%	11.17%	9.52%
Validian	N/A	N/A	N/A

Earnings and Valuation

This table compares The Descartes Systems Group and Validian”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Descartes Systems Group	$728.99 million	9.47	$163.77 million	$2.00	40.32
Validian	N/A	N/A	N/A	N/A	N/A

The Descartes Systems Group has higher revenue and earnings than Validian.

Insider & Institutional Ownership

77.7% of The Descartes Systems Group shares are held by institutional investors. 0.3% of The Descartes Systems Group shares are held by insiders. Comparatively, 28.3% of Validian shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

The Descartes Systems Group beats Validian on 9 of the 10 factors compared between the two stocks.

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.

About Validian

Validian Corporation, a development stage company, provides software products to assist public and private enterprises in Canada and internationally. The company primarily offers ValidianProtect, a software only cyber security technology comprising an application and data protection platform and a data protection module, which protect the life cycle of data by providing secure access, retrieval, transfer, receipt, storage, and usage of digital information on mobile, cloud, Web, local and network applications, devices, servers, databases, and memory at rest, as well as in transit and in usage using wired, and wireless and mobile networks. Its ValidianProtect also provides secure mobile messaging and communications, cloud computing, cloud storage, distributed computing and Web application and Web portal access and usage, software defined networking, and the Internet of Things and SCADA for computers, servers, databases, intelligent sensors, and tablets and smartphones. In addition, the company offers solutions customized to the client's business process to ensure authenticity, integrity, and custody of digital assets. It offers its products through direct sales, as well as through channel partners, such as independent software vendors, application service providers, value-added resellers, independent marketing representatives, system integrators, and original equipment manufacturers. The company was formerly known as Sochrys.com Inc. and changed its name to Validian Corporation in January 2003. Validian Corporation was incorporated in 1989 and is based in Ottawa, Canada.