Descartes Systems Group Inc (DSGX)vsShopify Inc (SHOP)
DSGX
Descartes Systems Group Inc
$70.05
-1.28%
TECHNOLOGY · Cap: $6.10B
SHOP
Shopify Inc
$118.42
+1.95%
TECHNOLOGY · Cap: $151.59B
Smart Verdict
WallStSmart Research — data-driven comparison
Shopify Inc generates 1485% more annual revenue ($11.56B vs $728.99M). DSGX leads profitability with a 22.5% profit margin vs 10.6%. DSGX appears more attractively valued with a PEG of 1.61. DSGX earns a higher WallStSmart Score of 65/100 (B-).
DSGX
Strong Buy65
out of 100
Grade: B-
SHOP
Hold48
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+12.9%
Fair Value
$75.55
Current Price
$70.05
$5.50 discount
Margin of Safety
-1729.9%
Fair Value
$6.39
Current Price
$118.42
$112.03 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 31.2%
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Keeps 23 of every $100 in revenue as profit
15.1% revenue growth
Earnings expanding 21.0% YoY
Revenue surging 30.6% year-over-year
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Large-cap with strong market position
Strong operational efficiency at 20.3%
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Weak financial health signals
Trading at 11.5x book value
Weak financial health signals
Expensive relative to growth rate
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 22.5% and operating margin at 31.2%. Revenue growth of 15.1% demonstrates continued momentum.
Bull Case : SHOP
The strongest argument for SHOP centers on Revenue Growth, Debt/Equity, Altman Z-Score. Revenue growth of 30.6% demonstrates continued momentum.
Bear Case : DSGX
The primary concerns for DSGX are PEG Ratio, P/E Ratio, Piotroski F-Score.
Bear Case : SHOP
The primary concerns for SHOP are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 123.6x leaves little room for execution misses.
Key Dynamics to Monitor
SHOP carries more volatility with a beta of 2.90 — expect wider price swings.
SHOP is growing revenue faster at 30.6% — sustainability is the question.
SHOP generates stronger free cash flow (715M), providing more financial flexibility.
Monitor SOFTWARE - APPLICATION industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DSGX scores higher overall (65/100 vs 48/100), backed by strong 22.5% margins and 15.1% revenue growth. Both earn "Strong Buy" and "Hold" 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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