WallStSmart

Descartes Systems Group Inc (DSGX)vsSAP SE ADR (SAP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

SAP SE ADR generates 4948% more annual revenue ($36.80B vs $728.99M). DSGX leads profitability with a 22.5% profit margin vs 19.5%. SAP appears more attractively valued with a PEG of 0.79. DSGX earns a higher WallStSmart Score of 65/100 (B-).

DSGX

Strong Buy

65

out of 100

Grade: B-

Growth: 8.0Profit: 7.5Value: 8.7Quality: 7.5
Piotroski: 3/9Altman Z: 4.51

SAP

Buy

58

out of 100

Grade: C

Growth: 5.3Profit: 8.5Value: 7.3Quality: 8.0
Piotroski: 6/9Altman Z: 3.09
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DSGXUndervalued (+12.9%)

Margin of Safety

+12.9%

Fair Value

$75.55

Current Price

$70.05

$5.50 discount

UndervaluedFair: $75.55Overvalued
SAPSignificantly Overvalued (-88.8%)

Margin of Safety

-88.8%

Fair Value

$104.04

Current Price

$168.95

$64.91 premium

UndervaluedFair: $104.04Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DSGX6 strengths · Avg: 9.2/10
Operating MarginProfitability
31.2%10/10

Strong operational efficiency at 31.2%

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.5110/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
22.5%9/10

Keeps 23 of every $100 in revenue as profit

Revenue GrowthGrowth
15.1%8/10

15.1% revenue growth

EPS GrowthGrowth
21.0%8/10

Earnings expanding 21.0% YoY

SAP6 strengths · Avg: 8.8/10
Market CapQuality
$217.55B10/10

Mega-cap, among the largest globally

Altman Z-ScoreHealth
3.0910/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.189/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.798/10

Growing faster than its price suggests

Operating MarginProfitability
29.2%8/10

Strong operational efficiency at 29.2%

Free Cash FlowQuality
$1.09B8/10

Generating 1.1B in free cash flow

Areas to Watch

DSGX3 concerns · Avg: 3.7/10
PEG RatioValuation
1.614/10

Expensive relative to growth rate

P/E RatioValuation
38.0x4/10

Premium valuation, high expectations priced in

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

SAP2 concerns · Avg: 4.0/10
P/E RatioValuation
26.3x4/10

Moderate valuation

Revenue GrowthGrowth
3.3%4/10

3.3% revenue growth

Comparative Analysis Report

WallStSmart Research

Bull Case : DSGX

The strongest argument for DSGX centers on Operating Margin, Debt/Equity, Altman Z-Score. Profitability is solid with margins at 22.5% and operating margin at 31.2%. Revenue growth of 15.1% demonstrates continued momentum.

Bull Case : SAP

The strongest argument for SAP centers on Market Cap, Altman Z-Score, Debt/Equity. Profitability is solid with margins at 19.5% and operating margin at 29.2%. PEG of 0.79 suggests the stock is reasonably priced for its growth.

Bear Case : DSGX

The primary concerns for DSGX are PEG Ratio, P/E Ratio, Piotroski F-Score.

Bear Case : SAP

The primary concerns for SAP are P/E Ratio, Revenue Growth.

Key Dynamics to Monitor

DSGX profiles as a growth stock while SAP is a value play — different risk/reward profiles.

SAP carries more volatility with a beta of 0.69 — expect wider price swings.

DSGX is growing revenue faster at 15.1% — sustainability is the question.

SAP generates stronger free cash flow (1.1B), providing more financial flexibility.

Bottom Line

DSGX scores higher overall (65/100 vs 58/100), backed by strong 22.5% margins and 15.1% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Descartes Systems Group Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Descartes Systems Group Inc. provides cloud-based logistics and supply chain management business process solutions that focus on improving productivity, performance and security for intensive logistics companies globally. The company is headquartered in Waterloo, Canada.

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SAP SE ADR

TECHNOLOGY · SOFTWARE - APPLICATION · USA

SAP SE is a global enterprise application software company. The company is headquartered in Walldorf, Germany.

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