The Descartes Systems Group (DSGX) & Its Peers Financial Analysis

The Descartes Systems Group (NASDAQ:DSGX) is one of 959 publicly-traded companies in the “Software” industry, but how does it contrast to its competitors? We will compare The Descartes Systems Group to related companies based on the strength of its analyst recommendations, valuation, risk, profitability, dividends, institutional ownership and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for The Descartes Systems Group and its competitors, 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	5835	21607	44998	1500	2.57

The Descartes Systems Group presently has a consensus price target of $100.33, indicating a potential upside of 4.52%. As a group, “Software” companies have a potential upside of 28.12%. Given The Descartes Systems Group’s competitors higher possible upside, analysts clearly believe The Descartes Systems Group has less favorable growth aspects than its competitors.

Profitability

This table compares The Descartes Systems Group and its competitors’ 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	-599.26%	26.08%	-8.90%

Insider & Institutional Ownership

77.7% of The Descartes Systems Group shares are owned by institutional investors. Comparatively, 41.5% 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 hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

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 competitors have a beta of 1.35, suggesting that their average stock price is 35% more volatile than the S&P 500.

Valuation and Earnings

This table compares The Descartes Systems Group and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
The Descartes Systems Group	$728.99 million	$163.77 million	44.86
The Descartes Systems Group Competitors	$1.90 billion	$382.82 million	112.40

The Descartes Systems Group’s competitors 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 competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

The Descartes Systems Group competitors 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 software and network services for businesses involved in logistics and supply chain operations. Its solutions help customers plan, manage and track the movement of goods, information and related resources. The company’s offerings include transportation and route planning, shipment visibility, freight management, customs and trade compliance, and ecommerce fulfillment tools. These services are designed to connect businesses and logistics providers and support the coordination of shipments across supply chains.