Head-To-Head Review: The Descartes Systems Group (NASDAQ:DSGX) and NetSol Technologies (NASDAQ:NTWK)

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

Analyst Recommendations

This is a summary of recent ratings and price targets for The Descartes Systems Group and NetSol Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Descartes Systems Group	1	2	10	1	2.79
NetSol Technologies	0	1	0	0	2.00

The Descartes Systems Group presently has a consensus price target of $103.17, suggesting a potential upside of 55.35%. Given The Descartes Systems Group’s stronger consensus rating and higher probable upside, equities analysts plainly believe The Descartes Systems Group is more favorable than NetSol Technologies.

Profitability

This table compares The Descartes Systems Group and NetSol Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The Descartes Systems Group	23.35%	11.17%	9.52%
NetSol Technologies	2.49%	4.24%	2.76%

Insider & Institutional Ownership

77.7% of The Descartes Systems Group shares are owned by institutional investors. Comparatively, 16.0% of NetSol Technologies shares are owned by institutional investors. 0.3% of The Descartes Systems Group shares are owned by company insiders. Comparatively, 13.5% of NetSol Technologies shares are owned by company 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.

Volatility and Risk

The Descartes Systems Group has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500. Comparatively, NetSol Technologies has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500.

Valuation and Earnings

This table compares The Descartes Systems Group and NetSol Technologies”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	$728.99 million	7.81	$163.77 million	$2.00	33.21
NetSol Technologies	$66.09 million	0.80	$2.92 million	$0.15	29.73

The Descartes Systems Group has higher revenue and earnings than NetSol Technologies. NetSol Technologies 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.

Summary

The Descartes Systems Group beats NetSol Technologies 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 NetSol Technologies

NetSol Technologies, Inc. designs, develops, markets, and exports enterprise software solutions to the automobile financing and leasing, banking, and financial services industries worldwide. The company offers NFS Ascent, a suite of financial applications for businesses in the finance and leasing industry. Its NFS Ascent constituent applications include Omni Point of Sale, a web-based application; Contract Management System (CMS), an application for managing and maintaining credit contracts; Wholesale Finance System (WFS), a system for automating and managing the lifecycle of wholesale finance; Dealer Auditor Access System, a web-based solution that could be used in conjunction with WFS or any third-party wholesale finance system; NFS Ascent deployed on The Cloud, a cloud-version of NFS Ascent; and NFS Digital, that includes Self Point of Sale, Mobile Account, Mobile Point of Sale, Mobile Dealer, Mobile Auditor, Mobile Collector, and Mobile Field Investigator. The company also provides Otoz Digital Auto-Retail and mobility orchestration, a white-label SaaS platform; Otoz Ecosystem, an API-based architecture; and Otoz Platform, a white label platform, which includes Dealer/Admin Tool and Customer Portals. In addition, it offers system integration, consulting, and information technology products and services. It serves blue chip organizations, Dow-Jones 30 Industrials, Fortune 500 manufacturers and financial institutions, and vehicle manufacturers. The company was incorporated in 1997 and is headquartered in Encino, California.