Descartes Systems Group Inc (DSGX)vsShopify Inc (SHOP)
DSGX
Descartes Systems Group Inc
$75.46
-3.14%
TECHNOLOGY · Cap: $6.25B
SHOP
Shopify Inc
$109.54
-5.60%
TECHNOLOGY · Cap: $139.50B
Smart Verdict
WallStSmart Research — data-driven comparison
Shopify Inc generates 1540% more annual revenue ($12.37B vs $753.87M). DSGX leads profitability with a 23.4% profit margin vs 10.8%. DSGX appears more attractively valued with a PEG of 1.32. DSGX earns a higher WallStSmart Score of 69/100 (B-).
DSGX
Strong Buy69
out of 100
Grade: B-
SHOP
Buy50
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-5.8%
Fair Value
$62.18
Current Price
$75.46
$13.28 premium
Margin of Safety
+18.2%
Fair Value
$143.01
Current Price
$109.54
$33.47 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 32.9%
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Keeps 23 of every $100 in revenue as profit
Earnings expanding 34.1% YoY
Revenue surging 34.3% year-over-year
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Areas to Watch
Premium valuation, high expectations priced in
Expensive relative to growth rate
Trading at 11.4x book value
Weak financial health signals
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : DSGX
The strongest argument for DSGX centers on Operating Margin, Debt/Equity, Altman Z-Score. Profitability is solid with margins at 23.4% and operating margin at 32.9%. Revenue growth of 14.7% demonstrates continued momentum.
Bull Case : SHOP
The strongest argument for SHOP centers on Revenue Growth, Debt/Equity, Altman Z-Score. Revenue growth of 34.3% demonstrates continued momentum.
Bear Case : DSGX
The primary concerns for DSGX are P/E Ratio.
Bear Case : SHOP
The primary concerns for SHOP are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 105.4x 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 2.59 — expect wider price swings.
SHOP is growing revenue faster at 34.3% — sustainability is the question.
SHOP generates stronger free cash flow (476M), providing more financial flexibility.
Bottom Line
DSGX scores higher overall (69/100 vs 50/100), backed by strong 23.4% margins and 14.7% revenue growth. SHOP offers better value entry with a 18.2% 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.
Visit Website →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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