Descartes Systems Group (NASDAQ:DSGX) and BlackBerry (NYSE:BB) are both mid-cap computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, risk, analyst recommendations and profitability.
Institutional & Insider Ownership
79.3% of Descartes Systems Group shares are owned by institutional investors. Comparatively, 51.4% of BlackBerry shares are owned by institutional investors. 0.3% of Descartes Systems Group shares are owned by company insiders. Comparatively, 22.7% of BlackBerry shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares Descartes Systems Group and BlackBerry’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Descartes Systems Group||10.70%||4.98%||3.89%|
This is a breakdown of recent ratings for Descartes Systems Group and BlackBerry, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Descartes Systems Group||0||5||6||0||2.55|
Descartes Systems Group presently has a consensus price target of $45.20, suggesting a potential downside of 2.19%. BlackBerry has a consensus price target of $7.50, suggesting a potential upside of 11.44%. Given BlackBerry’s higher probable upside, analysts clearly believe BlackBerry is more favorable than Descartes Systems Group.
Risk and Volatility
Descartes Systems Group has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500. Comparatively, BlackBerry has a beta of 1.8, meaning that its share price is 80% more volatile than the S&P 500.
Earnings & Valuation
This table compares Descartes Systems Group and BlackBerry’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Descartes Systems Group||$275.17 million||14.13||$31.28 million||$0.40||115.53|
|BlackBerry||$904.00 million||4.11||$93.00 million||$0.13||51.77|
BlackBerry has higher revenue and earnings than Descartes Systems Group. BlackBerry 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.
Descartes Systems Group beats BlackBerry on 9 of the 14 factors compared between the two stocks.
About Descartes Systems Group
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.
BlackBerry Limited provides enterprise software and services worldwide. The company offers BlackBerry Enterprise Mobility Suite, which combines and integrates mobile security, management, productivity, and collaboration solutions, such as BlackBerry UEM, BlackBerry Dynamics, and BlackBerry Workspaces; BlackBerry AtHoc, a networked crisis communications solution; SecuSUITE for Government, a voice encryption software solution; BlackBerry Enterprise Consulting and BlackBerry Cybersecurity Consulting services; and BBM Enterprise, an enterprise-grade instant messaging solution, as well as BlackBerry Spark Communication services. It also provides CylancePROTECT, an endpoint threat prevention solution; CylanceOPTICS, an endpoint detection and response solution; BlackBerry QNX real-time operating systems, middleware, development tools, and professional services; BlackBerry Jarvis, a cloud-based binary static application security testing platform; and BlackBerry Certicom that offers device security, anti-counterfeiting, and product authentication. In addition, the company offers Paratek, which provides adaptive radio frequency antenna tuning technology; and BlackBerry Radar, an asset tracking and telematics solution, as well as intellectual property and licensing, mobility licensing, and other licensing programs. Further, it is involved in developing BlackBerry 10 platform, and delivering BlackBerry productivity applications to Android smartphone; developing and licensing of device software and outsourcing to partners; and providing of Android smartphones, smartphone accessories, and non-warranty repair services. Additionally, the company engages in the operations related to subscribers using mobile devices with its legacy BlackBerry 7 and prior operating systems. The company was formerly known as Research In Motion Limited and changed its name to BlackBerry Limited in July 2013. BlackBerry Limited was founded in 1984 and is headquartered in Waterloo, Canada.
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