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

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

Risk and Volatility

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

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

Analyst Ratings

This is a summary of current ratings for The Descartes Systems Group and ZIM, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Descartes Systems Group	0	5	7	1	2.69
ZIM	0	0	0	0	0.00

The Descartes Systems Group presently has a consensus price target of $117.55, indicating a potential upside of 27.23%. Given The Descartes Systems Group’s stronger consensus rating and higher probable upside, equities research analysts plainly believe The Descartes Systems Group is more favorable than ZIM.

Insider and Institutional Ownership

77.7% of The Descartes Systems Group shares are owned by institutional investors. 0.3% of The Descartes Systems Group shares are owned by company insiders. Comparatively, 70.7% of ZIM shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares The Descartes Systems Group and ZIM”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Descartes Systems Group	$651.00 million	12.20	$143.27 million	$1.77	52.20
ZIM	N/A	N/A	-$60,000.00	N/A	N/A

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

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.