Comparing The Descartes Systems Group (NASDAQ:DSGX) & Kinaxis (OTCMKTS:KXSCF)

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

Earnings and Valuation

This table compares The Descartes Systems Group and Kinaxis”s top-line 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	10.73	$163.77 million	$2.14	42.71
Kinaxis	$548.03 million	6.81	$70.70 million	$2.48	55.60

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

Profitability

This table compares The Descartes Systems Group and Kinaxis’ 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%
Kinaxis	14.42%	20.95%	12.05%

Analyst Ratings

This is a breakdown of current ratings and target prices for The Descartes Systems Group and Kinaxis, 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
Kinaxis	0	0	4	0	3.00

The Descartes Systems Group currently has a consensus price target of $100.33, suggesting a potential upside of 9.77%. Given The Descartes Systems Group’s higher possible upside, analysts clearly believe The Descartes Systems Group is more favorable than Kinaxis.

Insider & Institutional Ownership

77.7% of The Descartes Systems Group shares are owned by institutional investors. 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 company is poised for long-term growth.

Summary

The Descartes Systems Group beats Kinaxis on 9 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 Kinaxis

Kinaxis Inc. provides cloud-based subscription software for supply chain operations in the United States, Europe, Asia, and Canada. It offers RapidResponse, a cloud-based platform, which provides advanced planning, sales and operation planning, supply and demand planning, inventory management, and command and control center services. The company also provides strategic services, such as digital business transformation, advanced analytics, and digital innovation and acceleration services; implementation, including agile implementation methodology, RapidStart, sustainment, and rollout services; and continuous learning services consisting of Kinaxis learning center, custom learning programs, and certification, as well as support services. It serves aerospace and defense, automotive, consumer products, high-tech and electronics, industrial, life sciences, logistics, and retail industries. The company was formerly known as Webplan Inc. and changed its name to Kinaxis Inc. in May 2005. Kinaxis Inc. was founded in 1984 and is headquartered in Ottawa, Canada.