Descartes Systems Group Inc (DSGX)vsShopify Inc (SHOP)
DSGX
Descartes Systems Group Inc
$78.86
-0.67%
TECHNOLOGY · Cap: $6.61B
SHOP
Shopify Inc
$147.74
+7.12%
TECHNOLOGY · Cap: $165.33B
Smart Verdict
WallStSmart Research — data-driven comparison
Shopify Inc generates 1612% more annual revenue ($13.27B vs $775.17M). DSGX leads profitability with a 24.2% profit margin vs 14.5%. DSGX appears more attractively valued with a PEG of 1.56. DSGX earns a higher WallStSmart Score of 67/100 (B-).
DSGX
Strong Buy67
out of 100
Grade: B-
SHOP
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-2.6%
Fair Value
$64.09
Current Price
$78.86
$14.77 premium
Margin of Safety
+23.5%
Fair Value
$152.79
Current Price
$147.74
$5.05 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 33.2%
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Keeps 24 of every $100 in revenue as profit
Earnings expanding 32.6% YoY
Revenue surging 33.7% year-over-year
Earnings expanding 68.1% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Expensive relative to growth rate
Trading at 15.0x book value
Weak financial health signals
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull 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 : SHOP
The strongest argument for SHOP centers on Revenue Growth, EPS Growth, Debt/Equity. Revenue growth of 33.7% demonstrates continued momentum.
Bear Case : DSGX
The primary concerns for DSGX are PEG Ratio, P/E Ratio.
Bear Case : SHOP
The primary concerns for SHOP are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 86.8x leaves little room for execution misses.
Key Dynamics to Monitor
DSGX profiles as a mature stock while SHOP is a growth play — different risk/reward profiles.
SHOP carries more volatility with a beta of 2.62 — expect wider price swings.
SHOP is growing revenue faster at 33.7% — sustainability is the question.
SHOP generates stronger free cash flow (654M), providing more financial flexibility.
Bottom Line
DSGX scores higher overall (67/100 vs 64/100), backed by strong 24.2% margins and 11.8% revenue growth. SHOP offers better value entry with a 23.5% margin of safety. 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.
Visit Website →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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