Reviewing The Descartes Systems Group (NASDAQ:DSGX) and USData (OTCMKTS:USDC)

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Descartes Systems Group	1	2	10	1	2.79
USData	0	0	0	0	0.00

The Descartes Systems Group currently has a consensus price target of $103.17, indicating a potential upside of 55.35%. Given The Descartes Systems Group’s stronger consensus rating and higher probable upside, research analysts plainly believe The Descartes Systems Group is more favorable than USData.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Descartes Systems Group	$753.87 million	7.57	$163.77 million	$2.00	33.21
USData	N/A	N/A	N/A	N/A	N/A

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

Institutional & Insider 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 insiders. Comparatively, 0.6% of USData shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares The Descartes Systems Group and USData’s 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%
USData	N/A	N/A	N/A

Risk & Volatility

The Descartes Systems Group has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, USData has a beta of -1.7, suggesting that its stock price is 270% less volatile than the S&P 500.

Summary

The Descartes Systems Group beats USData on 10 of the 11 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 USData

USDATA Corp. operates as an independent, global supplier of industrial automation software tools, applications, and consulting services designed to provide businesses with the knowledge and control needed to perfect the products they produce and the processes they manage. USDATA Corp. develops, markets, and supports component-based software products for customers requiring enterprise-wide, open solutions for the industrial automation markets. These software products provide customers real-time computer applications that enable interactive, dynamic, and graphical interfaces to industrial operations. These applications collect, consolidate, and communicate information about an automated process, typically drawn from complex operating sources or from multiple sites throughout an enterprise; and enable the user to interact with and control critical processes. The real-time information provided by its products is intended to enable customers to reduce operating costs, improve product quality, and increase overall throughput and productivity. USDATA’s FactoryLink is a process knowledge and control solution where as its Xfactory is a product knowledge and control software product. It serves customers in a variety of industries, including chemical, oil and gas, food, beverage, automotive, aerospace, telecommunications, electronics, transportation, and other industries. These customers are located in the United States, Europe, Canada, Latin America, and Asia Pacific. The company sells its products and services to end customers and systems integrators through distributors, original equipment manufacturer relationships, and direct sales. USDATA Corp. was founded in 1974 and is based in Richardson, Texas.