The Descartes Systems Group (NASDAQ:DSGX – Get Rating) and SeaChange International (NASDAQ:SEAC – Get Rating) 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, valuation, earnings, profitability, institutional ownership, risk and dividends.
Risk & Volatility
The Descartes Systems Group has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500. Comparatively, SeaChange International has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.
Get The Descartes Systems Group alerts:Insider and Institutional Ownership
80.3% of The Descartes Systems Group shares are owned by institutional investors. Comparatively, 26.1% of SeaChange International shares are owned by institutional investors. 0.3% of The Descartes Systems Group shares are owned by company insiders. Comparatively, 4.0% of SeaChange International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares The Descartes Systems Group and SeaChange International's top-line revenue, earnings per share (EPS) and valuation.| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| The Descartes Systems Group | $424.69 million | 13.40 | $86.28 million | $1.06 | 63.34 |
| SeaChange International | $27.31 million | 0.95 | -$7.43 million | ($0.26) | -2.00 |
The Descartes Systems Group has higher revenue and earnings than SeaChange International. SeaChange International is trading at a lower price-to-earnings ratio than The Descartes Systems Group, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for The Descartes Systems Group and SeaChange International, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| The Descartes Systems Group | 0 | 2 | 4 | 0 | 2.67 |
| SeaChange International | 0 | 1 | 0 | 0 | 2.00 |
The Descartes Systems Group presently has a consensus price target of $76.22, suggesting a potential upside of 13.53%. Given The Descartes Systems Group's stronger consensus rating and higher possible upside, analysts plainly believe The Descartes Systems Group is more favorable than SeaChange International.
Profitability
This table compares The Descartes Systems Group and SeaChange International's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| The Descartes Systems Group | 19.69% | 8.97% | 7.54% |
| SeaChange International | -43.80% | -7.97% | -6.13% |
Summary
The Descartes Systems Group beats SeaChange International on 11 of the 13 factors compared between the two stocks.
About The Descartes Systems Group
(Get Rating)
The Descartes Systems Group Inc. provides cloud-based logistics and supply chain management business process solutions that focuses on enhancing the productivity, performance, and security of logistics-intensive businesses worldwide. Its Logistics Technology platform offers a range of modular, cloud-based, and interoperable web and wireless logistics management applications, which unites a community of logistics-focused parties, allowing them to transact business. The company provides a suite of solutions that include routing, mobile and telematics; transportation management and e-commerce enablement; customs and regulatory compliance; trade data; global logistics network services; and broker and forwarder enterprise systems. It offers its customers to use its modular, software-as-a-service, and data solutions to route, schedule, track, and measure delivery resources; plan, allocate, and execute shipments; rate, audit, and pay transportation invoices; access and analyze global trade data; research and perform trade tariff and duty calculations; file customs and security documents for imports and exports; and various other logistics processes. The company also provides cloud-based ecommerce warehouse management solutions; consulting, implementation, and training services; and maintenance and support services. It primarily focuses on serving transportation providers, logistics service providers, and distribution-intensive companies, as well as manufacturers, retailers, distributors, and mobile business service providers. The company was incorporated in 1981 and is headquartered in Waterloo, Canada.
About SeaChange International
(Get Rating)
SeaChange International, Inc. provides multiscreen, advertising, and premium over the top (OTT) video products and services that facilitate the aggregation, licensing, management, and distribution of video and advertising content worldwide. The company offers video products, including video back-office, a software platform that enables content and service providers to manage, monetize and deliver a seamless viewing experience to subscribers across televisions, personal computers (PCs), tablets, smart phones, and other IP-enabled devices; and media asset management software, which is used to receive, manage and publish video content for viewing on televisions, tablets, PCs and other consumer devices. It also provides an advertising platform to maximize advertising revenue across multiscreen, broadcast, on-demand, and OTT viewing. In addition, the company offers client application, a multiscreen user experience product that empower service providers and content owners to optimize live and on-demand video consumption on multiscreen and OTT services. Further, it provides professional, and maintenance and technical support services, as well as managed services. The company sells and markets its products and services through a direct sales process, as well as to systems integrators and value-added resellers. It serves cable system operators, telecommunications companies, and satellite operators, as well as broadcasters and other content providers. The company was incorporated in 1993 and is headquartered in Boston, Massachusetts.
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