Comparing Descartes Systems Group (DSGX) and DealerTrack Technologies (NASDAQ:TRAK)

DealerTrack Technologies (NASDAQ: TRAK) and Descartes Systems Group (NASDAQ:DSGX) are both technology companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, dividends, risk, profitability, analyst recommendations, earnings and institutional ownership.

Institutional & Insider Ownership

77.0% of Descartes Systems Group shares are owned by institutional investors. 0.3% of Descartes Systems Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for DealerTrack Technologies and Descartes Systems Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DealerTrack Technologies 0 0 0 0 N/A
Descartes Systems Group 0 3 5 0 2.63

Descartes Systems Group has a consensus target price of $33.81, suggesting a potential upside of 20.33%.

Valuation & Earnings

This table compares DealerTrack Technologies and Descartes Systems Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DealerTrack Technologies N/A N/A N/A ($0.67) N/A
Descartes Systems Group $203.78 million 10.59 $23.83 million $0.34 82.65

Descartes Systems Group has higher revenue and earnings than DealerTrack Technologies. DealerTrack Technologies is trading at a lower price-to-earnings ratio than Descartes Systems Group, indicating that it is currently the more affordable of the two stocks.

Profitability

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

Net Margins Return on Equity Return on Assets
DealerTrack Technologies -3.45% -3.48% -1.59%
Descartes Systems Group 11.61% 5.83% 4.78%

Summary

Descartes Systems Group beats DealerTrack Technologies on 8 of the 8 factors compared between the two stocks.

DealerTrack Technologies Company Profile

Dealertrack Technologies, Inc. provides Web-based software solutions and services. The Company provides solutions and services for segments of the automotive retail industry, including dealers, lenders, original equipment manufacturers (OEMs), third-party retailers, aftermarket providers and other service providers. Dealertrack operates the online credit application networks in the United States and Canada. The Company’s solutions includes Digital Marketing solutions, Dealer Management solutions, F&I solutions, Inventory solutions, Registration & Titling solutions, and Collateral Management solutions. Digital Marketing solutions include digital marketing tools, such as desktop and mobile Website design, search engine optimization (SEO), search engine marketing (SEM), social media and reputation management tools. Registration & Titling solutions include online and cross-state vehicle registration services.

Descartes Systems Group Company Profile

Descartes Systems Group Inc (Descartes) is a Canada-based global provider of federated network and global logistics technology solutions that help its customers make and receive shipments and manage related resources. Its network-based solutions, which primarily consist of services and software, connect people to their trading partners and enable business document exchange (bookings, bills of lading, status messages); regulatory compliance and customs filing; route and resource planning, execution and monitoring; access and leverage global trade and restricted party data; inventory and asset visibility; rate and transportation management, and warehouse operations. Its solutions include Logistics Technology Platform that fuses the Descartes Global Logistics Network (Descartes GLN); customs and regulatory compliance; routing, mobile and telematics; global logistics network services; transportation management, and broker and forwarder enterprise systems. It operates through MacroPoint.

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