Analyzing The Descartes Systems Group (NASDAQ:DSGX) and OptimizeRx (NASDAQ:OPRX)

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

Insider and Institutional Ownership

77.7% of The Descartes Systems Group shares are held by institutional investors. Comparatively, 76.5% of OptimizeRx shares are held by institutional investors. 0.3% of The Descartes Systems Group shares are held by company insiders. Comparatively, 5.6% of OptimizeRx shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

The Descartes Systems Group has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, OptimizeRx has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
The Descartes Systems Group	21.64%	10.41%	8.81%
OptimizeRx	-9.42%	4.50%	3.12%

Earnings and Valuation

This table compares The Descartes Systems Group and OptimizeRx”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Descartes Systems Group	$651.00 million	13.48	$143.27 million	$1.69	60.40
OptimizeRx	$104.75 million	3.35	-$18.66 million	($0.54)	-35.04

The Descartes Systems Group has higher revenue and earnings than OptimizeRx. OptimizeRx is trading at a lower price-to-earnings ratio than The Descartes Systems Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for The Descartes Systems Group and OptimizeRx, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Descartes Systems Group	0	4	7	1	2.75
OptimizeRx	0	3	8	1	2.83

The Descartes Systems Group currently has a consensus target price of $123.60, indicating a potential upside of 21.08%. OptimizeRx has a consensus target price of $11.81, indicating a potential downside of 37.57%. Given The Descartes Systems Group’s higher probable upside, equities analysts plainly believe The Descartes Systems Group is more favorable than OptimizeRx.

Summary

The Descartes Systems Group beats OptimizeRx on 10 of the 14 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 OptimizeRx

OptimizeRx Corporation, a digital health technology company, enables care-focused engagement between life sciences organizations, healthcare providers, and patients at critical junctures throughout the patient care journey. It offers various tech-enabled marketing solutions through its Artificial Intelligence-generated Dynamic Audience and Activation Platform, which enables customers to execute traditional marketing campaigns on its proprietary digital point-of-care network, as well as dynamic marketing campaigns that optimize audiences in real time to increase the value of treatment information for healthcare professionals and patients in response to clinical care events. The company was founded in 2006 and is based in Waltham, Massachusetts.