The Descartes Systems Group (NASDAQ:DSGX – Get Free Report) and Magic Software Enterprises (NASDAQ:MGIC – Get Free Report) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their risk, institutional ownership, earnings, profitability, dividends, valuation and analyst recommendations.
Analyst Ratings
This is a summary of current recommendations and price targets for The Descartes Systems Group and Magic Software Enterprises, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| The Descartes Systems Group | 0 | 5 | 6 | 1 | 2.67 |
| Magic Software Enterprises | 0 | 3 | 1 | 0 | 2.25 |
The Descartes Systems Group presently has a consensus target price of $116.30, suggesting a potential upside of 30.69%. Magic Software Enterprises has a consensus target price of $18.00, suggesting a potential downside of 32.13%. Given The Descartes Systems Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe The Descartes Systems Group is more favorable than Magic Software Enterprises.
Valuation & Earnings
| 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 |
| Magic Software Enterprises | $552.52 million | 2.36 | $36.88 million | $0.81 | 32.74 |
The Descartes Systems Group has higher revenue and earnings than Magic Software Enterprises. Magic Software Enterprises 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.
Profitability
This table compares The Descartes Systems Group and Magic Software Enterprises’ 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% |
| Magic Software Enterprises | 6.61% | 16.28% | 8.96% |
Risk & Volatility
The Descartes Systems Group has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500. Comparatively, Magic Software Enterprises has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.
Insider and Institutional Ownership
77.7% of The Descartes Systems Group shares are owned by institutional investors. Comparatively, 24.7% of Magic Software Enterprises shares are owned by institutional investors. 0.3% of The Descartes Systems Group shares are owned by insiders. Comparatively, 4.5% of Magic Software Enterprises shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
The Descartes Systems Group beats Magic Software Enterprises on 13 of the 15 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 Magic Software Enterprises
Magic Software Enterprises Ltd. provides proprietary application development, vertical software solutions, business process integration, information technologies (IT) outsourcing software services, and cloud-based services in Israel and internationally. Its Software Services segment develops, markets, sells, and supports application platform, software applications, and business and process integration solutions and related services. The company’s IT Professional Services segment offers IT services in the areas of infrastructure design and delivery, application development, technology planning and implementation services, communications services and solutions, and supplemental outsourcing services. It also offers proprietary application platforms, such as Magic xpa for developing and deploying business applications; AppBuilder for building, deploying, and maintaining business applications; Magic xpi for application integration; Magic xpi cloud native; FactoryEye for virtualization of production data; Magic Data Management and Analytics Platform for data management; and Magic SmartUX for cross-platform mobile business applications. The company also provides vertical software solutions comprising Clicks, a software solution for healthcare providers; Leap, a software solution for business support systems; Hermes Cargo, a packaged software solution for managing air cargo ground handling; HR Pulse, a single-tenant software as a service tool; MBS Solution, a system for managing TV broadcast management; Nativ, a system for management of rehabilitation centers; and Mobisale, a system for sales and distribution field activities for consumer goods manufacturers and wholesalers. In addition, It provides software maintenance, support, training, and consulting services. The company was formerly known as Mashov Software Export (1983) Ltd. and changed its name to Magic Software Enterprises Ltd. in 1991. The company was incorporated in 1983 and is headquartered in Or Yehuda, Israel.
Receive News & Ratings for The Descartes Systems Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for The Descartes Systems Group and related companies with MarketBeat.com's FREE daily email newsletter.
