SofTech (OTCMKTS:SOFT) versus The Descartes Systems Group (NASDAQ:DSGX) Head-To-Head Review

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SofTech	0	0	0	0	0.00
The Descartes Systems Group	1	2	9	1	2.77

The Descartes Systems Group has a consensus target price of $105.45, suggesting a potential upside of 37.11%. Given The Descartes Systems Group’s stronger consensus rating and higher possible upside, analysts clearly believe The Descartes Systems Group is more favorable than SofTech.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SofTech	N/A	N/A	N/A
The Descartes Systems Group	22.47%	10.70%	9.12%

Insider & Institutional Ownership

77.7% of The Descartes Systems Group shares are owned by institutional investors. 28.6% of SofTech shares are owned by insiders. Comparatively, 0.3% of The Descartes Systems Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SofTech	N/A	N/A	N/A	N/A	N/A
The Descartes Systems Group	$728.99 million	9.08	$163.77 million	$1.86	41.35

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

Summary

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

About SofTech

SofTech, Inc. develops, markets, distributes, and supports computer aided design (CAD), and product data management and collaboration computer solutions for the product lifecycle management (PLM) industry primarily in North America, Europe, and Asia. The company offers ProductCenter, a collaborative PLM solution, which manages the engineering data and electronic files of discrete parts designed in various used third party proprietary design technologies; delivers a combination of document management, design integration, configuration control, change management, bill of materials management, and integration capability with other enterprise-wide systems; enables secure management of product information; and allows engineers and the design chain to manage, share, modify, and track product data and documents in the product development lifecycle. Its ProductCenter technology also allows employees, customers, suppliers, and other team members to securely exchange product information while maintaining a centralized database of critical product data; and enables integration with other business applications, such as enterprise resource planning, supply chain management, and customer relationship management for data exchange across the product lifecycle. In addition, the company offers Connector platform, a technology that allows for a direct interface between Aras Corporation’s Innovator solution and CAD products. SofTech, Inc. markets and distributes its products and services primarily through a direct sales force and its service organization, as well as through resellers. The company was founded in 1969 and is headquartered in Lowell, Massachusetts.

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.