The Descartes Systems Group (NASDAQ:DSGX – Get Free Report) and Phunware (NASDAQ:PHUN – Get Free Report) are both technology companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.
Institutional & Insider Ownership
77.7% of The Descartes Systems Group shares are held by institutional investors. Comparatively, 7.6% of Phunware shares are held by institutional investors. 0.3% of The Descartes Systems Group shares are held by company insiders. Comparatively, 0.2% of Phunware shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings for The Descartes Systems Group and Phunware, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| The Descartes Systems Group | 0 | 3 | 12 | 1 | 2.88 |
| Phunware | 1 | 1 | 0 | 0 | 1.50 |
Valuation & Earnings
This table compares The Descartes Systems Group and Phunware”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| The Descartes Systems Group | $728.99 million | 9.49 | $163.77 million | $2.14 | 37.79 |
| Phunware | $2.55 million | 15.89 | -$11.40 million | ($0.65) | -3.05 |
The Descartes Systems Group has higher revenue and earnings than Phunware. Phunware 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.
Volatility and Risk
The Descartes Systems Group has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, Phunware has a beta of 2.61, meaning that its share price is 161% more volatile than the S&P 500.
Profitability
This table compares The Descartes Systems Group and Phunware’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| The Descartes Systems Group | 24.25% | 11.66% | 9.90% |
| Phunware | -471.72% | -13.79% | -12.37% |
Summary
The Descartes Systems Group beats Phunware 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 Phunware
Phunware, Inc., together with its subsidiaries, provides integrated software platform that equips companies with the products, solutions, and services to engage, manage, and monetize their mobile application portfolios in the United States and internationally. The company's products and services include mobile software and application transaction solutions comprise integration of software development kit (SDK) licenses, which consists of analytics that offers data related to application use and engagement; content management that allows application administrators to create and manage app content in a cloud-based portal; alerts, notifications, and messaging, which enables brands to send messages; marketing automation that enables location-triggered messages and workflow; advertising; and location-based services, such as mapping, navigation, wayfinding, workflow, asset management, and policy enforcement. It is also involved in the integration of its SDK licenses into existing applications maintained by its customers, as well as custom application development and support services; and provision of cloud-based vertical solutions for healthcare, retail, sports, aviation, real estate, hospitality, education, and other applications, as well as application transactions, including re-occurring and one-time transactional media purchases for application discovery, user acquisition and audience building, audience engagement, and audience monetization. Phunware, Inc. was founded in 2009 and is headquartered in Austin, Texas.
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