WallStSmart

Descartes Systems Group Inc (DSGX)vsShopify Inc (SHOP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Shopify Inc generates 1612% more annual revenue ($13.27B vs $775.17M). DSGX leads profitability with a 24.2% profit margin vs 14.5%. DSGX appears more attractively valued with a PEG of 1.56. DSGX earns a higher WallStSmart Score of 67/100 (B-).

DSGX

Strong Buy

67

out of 100

Grade: B-

Growth: 8.0Profit: 8.0Value: 4.0Quality: 8.5
Piotroski: 4/9Altman Z: 4.88

SHOP

Buy

64

out of 100

Grade: C+

Growth: 10.0Profit: 7.5Value: 4.7Quality: 8.5
Piotroski: 3/9Altman Z: 6.61
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DSGXFair Value (-2.6%)

Margin of Safety

-2.6%

Fair Value

$64.09

Current Price

$78.86

$14.77 premium

UndervaluedFair: $64.09Overvalued
SHOPUndervalued (+23.5%)

Margin of Safety

+23.5%

Fair Value

$152.79

Current Price

$147.74

$5.05 discount

UndervaluedFair: $152.79Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DSGX5 strengths · Avg: 9.4/10
Operating MarginProfitability
33.2%10/10

Strong operational efficiency at 33.2%

Debt/EquityHealth
0.0010/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.8810/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
24.2%9/10

Keeps 24 of every $100 in revenue as profit

EPS GrowthGrowth
32.6%8/10

Earnings expanding 32.6% YoY

SHOP5 strengths · Avg: 9.8/10
Revenue GrowthGrowth
33.7%10/10

Revenue surging 33.7% year-over-year

EPS GrowthGrowth
68.1%10/10

Earnings expanding 68.1% YoY

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
6.6110/10

Safe zone — low bankruptcy risk

Market CapQuality
$165.33B9/10

Large-cap with strong market position

Areas to Watch

DSGX2 concerns · Avg: 4.0/10
PEG RatioValuation
1.564/10

Expensive relative to growth rate

P/E RatioValuation
36.0x4/10

Premium valuation, high expectations priced in

SHOP4 concerns · Avg: 3.3/10
PEG RatioValuation
1.734/10

Expensive relative to growth rate

Price/BookValuation
15.0x4/10

Trading at 15.0x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
86.8x2/10

Premium valuation, high expectations priced in

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 24.2% and operating margin at 33.2%. Revenue growth of 11.8% demonstrates continued momentum.

Bull Case : SHOP

The strongest argument for SHOP centers on Revenue Growth, EPS Growth, Debt/Equity. Revenue growth of 33.7% demonstrates continued momentum.

Bear Case : DSGX

The primary concerns for DSGX are PEG Ratio, P/E Ratio.

Bear Case : SHOP

The primary concerns for SHOP are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 86.8x leaves little room for execution misses.

Key Dynamics to Monitor

DSGX profiles as a mature stock while SHOP is a growth play — different risk/reward profiles.

SHOP carries more volatility with a beta of 2.62 — expect wider price swings.

SHOP is growing revenue faster at 33.7% — sustainability is the question.

SHOP generates stronger free cash flow (654M), providing more financial flexibility.

Bottom Line

DSGX scores higher overall (67/100 vs 64/100), backed by strong 24.2% margins and 11.8% revenue growth. SHOP offers better value entry with a 23.5% margin of safety. 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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Shopify Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Shopify Inc., a commerce company, offers a commerce and service platform in Canada, the United States, the United Kingdom, Australia, Latin America, and internationally. The company is headquartered in Ottawa, Canada.

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