WallStSmart

Descartes Systems Group Inc (DSGX)vsShopify Inc (SHOP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Shopify Inc generates 1485% more annual revenue ($11.56B vs $728.99M). DSGX leads profitability with a 22.5% profit margin vs 10.6%. DSGX appears more attractively valued with a PEG of 1.61. DSGX earns a higher WallStSmart Score of 65/100 (B-).

DSGX

Strong Buy

65

out of 100

Grade: B-

Growth: 8.0Profit: 7.5Value: 8.7Quality: 7.5
Piotroski: 3/9Altman Z: 4.51

SHOP

Hold

48

out of 100

Grade: D+

Growth: 7.3Profit: 7.0Value: 2.0Quality: 8.5
Piotroski: 3/9Altman Z: 4.73
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DSGXUndervalued (+12.9%)

Margin of Safety

+12.9%

Fair Value

$75.55

Current Price

$70.05

$5.50 discount

UndervaluedFair: $75.55Overvalued
SHOPSignificantly Overvalued (-1729.9%)

Margin of Safety

-1729.9%

Fair Value

$6.39

Current Price

$118.42

$112.03 premium

UndervaluedFair: $6.39Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DSGX6 strengths · Avg: 9.2/10
Operating MarginProfitability
31.2%10/10

Strong operational efficiency at 31.2%

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.5110/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
22.5%9/10

Keeps 23 of every $100 in revenue as profit

Revenue GrowthGrowth
15.1%8/10

15.1% revenue growth

EPS GrowthGrowth
21.0%8/10

Earnings expanding 21.0% YoY

SHOP5 strengths · Avg: 9.4/10
Revenue GrowthGrowth
30.6%10/10

Revenue surging 30.6% year-over-year

Debt/EquityHealth
0.0910/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.7310/10

Safe zone — low bankruptcy risk

Market CapQuality
$151.59B9/10

Large-cap with strong market position

Operating MarginProfitability
20.3%8/10

Strong operational efficiency at 20.3%

Areas to Watch

DSGX3 concerns · Avg: 3.7/10
PEG RatioValuation
1.614/10

Expensive relative to growth rate

P/E RatioValuation
38.0x4/10

Premium valuation, high expectations priced in

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

SHOP4 concerns · Avg: 2.8/10
Price/BookValuation
11.5x4/10

Trading at 11.5x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
9.562/10

Expensive relative to growth rate

P/E RatioValuation
123.6x2/10

Premium valuation, high expectations priced in

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 22.5% and operating margin at 31.2%. Revenue growth of 15.1% demonstrates continued momentum.

Bull Case : SHOP

The strongest argument for SHOP centers on Revenue Growth, Debt/Equity, Altman Z-Score. Revenue growth of 30.6% demonstrates continued momentum.

Bear Case : DSGX

The primary concerns for DSGX are PEG Ratio, P/E Ratio, Piotroski F-Score.

Bear Case : SHOP

The primary concerns for SHOP are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 123.6x leaves little room for execution misses.

Key Dynamics to Monitor

SHOP carries more volatility with a beta of 2.90 — expect wider price swings.

SHOP is growing revenue faster at 30.6% — sustainability is the question.

SHOP generates stronger free cash flow (715M), providing more financial flexibility.

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

Bottom Line

DSGX scores higher overall (65/100 vs 48/100), backed by strong 22.5% margins and 15.1% revenue growth. Both earn "Strong Buy" and "Hold" 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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Shopify Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Shopify Inc., a commerce company, offers a commerce and service platform in Canada, the United States, the United Kingdom, Australia, Latin America, and internationally. The company is headquartered in Ottawa, Canada.

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