American Software (NASDAQ:AMSWA) and Descartes Systems Group (NASDAQ:DSGX) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.
Institutional and Insider Ownership
76.1% of American Software shares are held by institutional investors. Comparatively, 80.9% of Descartes Systems Group shares are held by institutional investors. 11.2% of American Software shares are held by insiders. Comparatively, 0.3% of Descartes Systems Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares American Software and Descartes Systems Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Descartes Systems Group||11.37%||6.01%||4.74%|
Valuation & Earnings
This table compares American Software 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|
|American Software||$112.70 million||3.71||$12.05 million||$0.36||37.31|
|Descartes Systems Group||$275.17 million||11.40||$31.28 million||$0.40||101.58|
Descartes Systems Group has higher revenue and earnings than American Software. American Software 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.
American Software pays an annual dividend of $0.44 per share and has a dividend yield of 3.3%. Descartes Systems Group does not pay a dividend. American Software pays out 122.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Volatility and Risk
American Software has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500. Comparatively, Descartes Systems Group has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.
This is a breakdown of recent recommendations for American Software and Descartes Systems Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Descartes Systems Group||0||4||5||0||2.56|
American Software currently has a consensus price target of $12.02, suggesting a potential downside of 10.54%. Descartes Systems Group has a consensus price target of $37.00, suggesting a potential downside of 8.93%. Given Descartes Systems Group’s stronger consensus rating and higher possible upside, analysts clearly believe Descartes Systems Group is more favorable than American Software.
Descartes Systems Group beats American Software on 12 of the 16 factors compared between the two stocks.
American Software Company Profile
American Software, Inc. develops, markets, and supports a portfolio of software and services worldwide. It operates in three segments: Supply Chain Management (SCM), Information Technology (IT) Consulting, and Other. The SCM segment provides supply chain management and retail planning solutions, including sales and operations planning, demand and inventory optimization, manufacturing planning and scheduling, supply optimization, retail allocation and merchandise planning, and transportation optimization solutions to streamline and optimize the forecasting, inventory, production scheduling, production, supply, allocation, distribution, and management of products between trading partners. This segment also offers cloud solutions for supply chain management, product lifecycle management, vendor quality, and vendor compliance and corporate social responsibility for brand retailers and manufacturers; and analytics and business intelligence solutions for the supply chain market. The IT Consulting segment offers IT staffing and consulting services, such as professional services/product management/project management, staff augmentation, and social media and analytic marketing, as well as cloud, collaboration, network, and security services for software enhancement, documentation, update, customer education, consulting, systems integration, maintenance, and other support services. The Other segment provides purchasing and materials management, customer order processing, financial, e-commerce, and traditional manufacturing solutions. The company markets its products through direct and indirect sales channels to retail, apparel, footwear, consumer packaged goods, chemicals, oil and gas, life sciences, telecommunications, consumer electronics, industrial products, and other manufacturing industries. American Software, Inc. was founded in 1970 and is headquartered in Atlanta, Georgia.
Descartes Systems Group Company Profile
The Descartes Systems Group Inc. provides federated network and logistics technology solutions worldwide. Its Logistics Application Suite offers a range of modular, cloud-based, and interoperable Web and wireless logistics management applications. The company's Logistics Application Suite offers solutions, such as route planning and execution, mobile applications, and telematics and compliance; transportation management solutions comprising carrier compliance and rate management, freight audit and settlement, dock scheduling and yard management, pool distribution, transportation planning and execution, and logistics flow control, as well as visibility, tracking, and performance management; and global logistics network services, such as document management, community, and connectivity services. Its Logistics Application Suite solutions also include customs and regulatory compliance solutions, such as cargo security compliance, declaration and fiscal compliance, customs warehouse management, ocean regulatory services, industry program support services, global trade content, and government solutions; and broker and forwarder enterprise system solutions, such as forwarder back office, and brokerage and declaration services. In addition, the company offers consulting, implementation, and training services; and maintenance and support services. It serves transportation providers, logistics service providers, and distribution-intensive companies through distributors, alliance partners, and value added resellers. The company was founded in 1981 and is headquartered in Waterloo, Canada.
Receive News & Ratings for American Software Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for American Software and related companies with MarketBeat.com's FREE daily email newsletter.