Contrasting The Descartes Systems Group (NASDAQ:DSGX) and NiCE (NASDAQ:NICE)

by · The Markets Daily

NiCE (NASDAQ:NICE – Get Free Report) and The Descartes Systems Group (NASDAQ:DSGX – Get Free Report) are both mid-cap technology companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, profitability, analyst recommendations, risk and valuation.

Profitability

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

Net MarginsReturn on EquityReturn on Assets
NiCE13.86%15.46%11.53%
The Descartes Systems Group24.25%11.66%9.90%

Volatility & Risk

NiCE has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, The Descartes Systems Group has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500.

Earnings and Valuation

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

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
NiCE$3.07 billion2.02$612.10 million$6.8715.43
The Descartes Systems Group$728.99 million10.57$163.77 million$2.1442.07

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

Insider & Institutional Ownership

63.3% of NiCE shares are owned by institutional investors. Comparatively, 77.7% of The Descartes Systems Group shares are owned by institutional investors. 0.0% of NiCE shares are owned by company insiders. Comparatively, 0.3% of The Descartes Systems Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for NiCE and The Descartes Systems Group, as reported by MarketBeat.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
NiCE08802.50
The Descartes Systems Group031112.87

NiCE presently has a consensus price target of $131.71, indicating a potential upside of 24.26%. The Descartes Systems Group has a consensus price target of $100.33, indicating a potential upside of 11.44%. Given NiCE’s higher possible upside, research analysts plainly believe NiCE is more favorable than The Descartes Systems Group.

Summary

The Descartes Systems Group beats NiCE on 8 of the 15 factors compared between the two stocks.

About NiCE

(Get Free Report)

NiCE Ltd., together with its subsidiaries, provides cloud platforms for AI-driven digital business solutions worldwide. It offers CXone, a cloud native open platform; Enlighten, an AI engine for the customer engagement market; and smart self-service enables organizations to address consumers’ needs; and journey orchestration solutions that empower organizations to connect and route customers to deal with the customer’s request, and connects them using real-time AI-based routing. The company provides smart self service solutions that empower organizations to build intelligent automated conversations based on data; and prepared agent solutions and tools enable contact center agents to guide and alert them in real time; provides solutions that help organizations to record structured and unstructured customer interaction and transaction data; and NiCE Evidencentral, an digital evidence management platform for public safety emergency communications, law enforcement, and criminal justice helps agencies. In addition, it offers X-Sight, is an open and flexible AI-cloud platform for financial crime and compliance; Xceed, a cloud platform for comprehensive AML and fraud prevention for small and mid-sized organizations; data intelligence solutions that enable organizations to turn raw data into comprehensive actionable intelligence to prevent and detect financial crimes; AI and analytics technologies to detect and prevent financial crimes in real-time; money laundering and fraud prevention solutions that help organizations adhere to capital markets compliance and anti-money laundering compliance regulations; intelligent investigations solutions; and self-service solutions that provide organizations with customization and self-development capabilities. The company was formerly known as NiCE-Systems Ltd. and changed its name to NiCE Ltd. in June 2016. NiCE Ltd. was founded in 1986 and is headquartered in Ra’anana, Israel.

About The Descartes Systems Group

(Get Free Report)

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.