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Descartes Systems Group (NASDAQ:DSGX) and Materialise (NASDAQ:MTLS) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, valuation and profitability.
Earnings and Valuation
This table compares Descartes Systems Group and Materialise’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 | 13.10 | $31.28 million | $0.40 | 107.08 |
| Materialise | $218.16 million | 4.23 | $3.58 million | $0.07 | 251.71 |
Descartes Systems Group has higher revenue and earnings than Materialise. Descartes Systems Group is trading at a lower price-to-earnings ratio than Materialise, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Descartes Systems Group has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500. Comparatively, Materialise has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent recommendations for Descartes Systems Group and Materialise, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Descartes Systems Group | 0 | 4 | 6 | 0 | 2.60 |
| Materialise | 0 | 1 | 1 | 0 | 2.50 |
Descartes Systems Group presently has a consensus target price of $43.22, suggesting a potential upside of 0.92%. Materialise has a consensus target price of $19.54, suggesting a potential upside of 10.87%. Given Materialise’s higher possible upside, analysts clearly believe Materialise is more favorable than Descartes Systems Group.
Insider and Institutional Ownership
79.3% of Descartes Systems Group shares are held by institutional investors. Comparatively, 29.5% of Materialise shares are held by institutional investors. 0.3% of Descartes Systems Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Descartes Systems Group and Materialise’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Descartes Systems Group | 10.58% | 5.28% | 4.01% |
| Materialise | 0.43% | 0.60% | 0.25% |
Summary
Descartes Systems Group beats Materialise on 12 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.
About Materialise
Materialise NV provides additive manufacturing software and 3D printing services in Europe, the Americas, Africa, and the Asia-Pacific. The company’s Materialise Software segment offers proprietary software through programs and platforms that enable and enhance the functionality of 3D printers and of 3D printing operations. Its software interfaces between various types of 3D printers; and various software applications and capturing technologies, including computer-aided design packages and 3D scanners. This segment serves 3D printing machine original equipment manufacturers; manufacturers in automotive, aerospace, consumer goods, and hearing aid industries; and 3D printing service bureaus through its sales force, Website, and third-party distributors. Its Materialise Medical segment provides medical software that allows medical-image based analysis and engineering, as well as patient-specific design of surgical devices and implants to research institutes, hospitals, and medical device companies; and clinical services. This segment has collaboration agreements with Zimmer Biomet Holdings, Inc.; Encore Medical, L.P.; DePuy Synthes Companies of Johnson & Johnson; Global Orthopaedic Technology Pty Ltd; Limacorporate Spa; Mathys AG; Howmedica Osteonics Corp.; and Corin Ltd. It serves medical device companies, hospitals, universities, and industrial companies through its direct sales force, Website, and picture archiving and communication system partners. The company’s Materialise Manufacturing segment primarily offers 3D printing services to industrial and commercial customers. It provides design and engineering services, and rapid prototyping and additive manufacturing of production parts; and engineers and 3D prints fixtures that allow automobile manufacturers and their suppliers to enhance the quality control and efficiency of their manufacturing processes. The company was founded in 1990 and is headquartered in Leuven, Belgium.
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