WallStSmart

Descartes Systems Group Inc (DSGX)vsSAP SE ADR (SAP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

SAP SE ADR generates 4827% more annual revenue ($38.19B vs $775.17M). DSGX leads profitability with a 24.2% profit margin vs 20.4%. DSGX appears more attractively valued with a PEG of 1.56. DSGX earns a higher WallStSmart Score of 67/100 (B-).

DSGX

Strong Buy

67

out of 100

Grade: B-

Growth: 8.0Profit: 8.0Value: 4.0Quality: 8.5
Piotroski: 4/9Altman Z: 4.88

SAP

Buy

64

out of 100

Grade: C+

Growth: 7.3Profit: 8.5Value: 4.0Quality: 8.0
Piotroski: 6/9Altman Z: 3.11
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DSGXFair Value (-2.6%)

Margin of Safety

-2.6%

Fair Value

$64.09

Current Price

$78.86

$14.77 premium

UndervaluedFair: $64.09Overvalued
SAPSignificantly Overvalued (-29.9%)

Margin of Safety

-29.9%

Fair Value

$151.18

Current Price

$210.68

$59.50 premium

UndervaluedFair: $151.18Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DSGX5 strengths · Avg: 9.4/10
Operating MarginProfitability
33.2%10/10

Strong operational efficiency at 33.2%

Debt/EquityHealth
0.0010/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.8810/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
24.2%9/10

Keeps 24 of every $100 in revenue as profit

EPS GrowthGrowth
32.6%8/10

Earnings expanding 32.6% YoY

SAP6 strengths · Avg: 9.0/10
Market CapQuality
$241.75B10/10

Mega-cap, among the largest globally

Altman Z-ScoreHealth
3.1110/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
20.4%9/10

Keeps 20 of every $100 in revenue as profit

Debt/EquityHealth
0.229/10

Conservative balance sheet, low leverage

Operating MarginProfitability
27.6%8/10

Strong operational efficiency at 27.6%

EPS GrowthGrowth
30.6%8/10

Earnings expanding 30.6% YoY

Areas to Watch

DSGX2 concerns · Avg: 4.0/10
PEG RatioValuation
1.564/10

Expensive relative to growth rate

P/E RatioValuation
36.0x4/10

Premium valuation, high expectations priced in

SAP3 concerns · Avg: 3.3/10
PEG RatioValuation
1.604/10

Expensive relative to growth rate

P/E RatioValuation
27.3x4/10

Moderate valuation

Price/BookValuation
66.3x2/10

Trading at 66.3x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : DSGX

The strongest argument for DSGX centers on Operating Margin, Debt/Equity, Altman Z-Score. Profitability is solid with margins at 24.2% and operating margin at 33.2%. Revenue growth of 11.8% demonstrates continued momentum.

Bull Case : SAP

The strongest argument for SAP centers on Market Cap, Altman Z-Score, Profit Margin. Profitability is solid with margins at 20.4% and operating margin at 27.6%.

Bear Case : DSGX

The primary concerns for DSGX are PEG Ratio, P/E Ratio.

Bear Case : SAP

The primary concerns for SAP are PEG Ratio, P/E Ratio, Price/Book.

Key Dynamics to Monitor

SAP carries more volatility with a beta of 0.78 — expect wider price swings.

DSGX is growing revenue faster at 11.8% — sustainability is the question.

SAP generates stronger free cash flow (3.0B), providing more financial flexibility.

Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

DSGX scores higher overall (67/100 vs 64/100), backed by strong 24.2% margins and 11.8% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Descartes Systems Group Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Descartes Systems Group Inc. provides cloud-based logistics and supply chain management business process solutions that focus on improving productivity, performance and security for intensive logistics companies globally. The company is headquartered in Waterloo, Canada.

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SAP SE ADR

TECHNOLOGY · SOFTWARE - APPLICATION · USA

SAP SE is a global enterprise application software company. The company is headquartered in Walldorf, Germany.

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