Analyzing ZIM (OTCMKTS:ZIMCF) and The Descartes Systems Group (NASDAQ:DSGX)

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

Risk and Volatility

The Descartes Systems Group has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, ZIM has a beta of -0.26, suggesting that its stock price is 126% less volatile than the S&P 500.

Earnings & Valuation

This table compares The Descartes Systems Group and ZIM”s top-line 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	11.75	$143.27 million	$1.77	50.28
ZIM	N/A	N/A	-$60,000.00	N/A	N/A

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Descartes Systems Group	0	5	6	1	2.67
ZIM	0	0	0	0	0.00

The Descartes Systems Group currently has a consensus target price of $116.30, suggesting a potential upside of 30.69%. Given The Descartes Systems Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe The Descartes Systems Group is more favorable than ZIM.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
The Descartes Systems Group	22.10%	10.57%	8.97%
ZIM	N/A	N/A	N/A

Institutional & Insider 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, 70.7% of ZIM shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

The Descartes Systems Group beats ZIM on 11 of the 12 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 ZIM

ZIM Corporation provides software products and services for the database and mobile markets in the United States, Brazil, Canada, Singapore, and Austria. The company operates in two segments, Mobile and Enterprise Software. It develops and sells ZIM integrated development environment (IDE) software, an enterprise software for use in the design, development, and management of information databases and mission critical applications. The company’s ZIM IDE software provides an IDE for Microsoft Windows, UNIX, and Linux computer operating systems. Its products are used to develop database applications in various industries, including finance, insurance, marketing, human resource, information, and records management. The company also provides migration services and management products; and short message services. ZIM Corporation was founded in 1997 and is headquartered in Ottawa, Canada.