Critical Review: Celerity Solutions (OTCMKTS:CLTY) vs. The Descartes Systems Group (NASDAQ:DSGX)

Celerity Solutions (OTCMKTS:CLTY) and The Descartes Systems Group (NASDAQ:DSGX) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, earnings, risk and institutional ownership.

Profitability

This table compares Celerity Solutions and The Descartes Systems Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Celerity Solutions	N/A	N/A	N/A
The Descartes Systems Group	22.47%	10.70%	9.12%

Analyst Ratings

This is a summary of recent ratings for Celerity Solutions and The Descartes Systems Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Celerity Solutions	0	0	0	0	0.00
The Descartes Systems Group	1	2	9	1	2.77

The Descartes Systems Group has a consensus price target of $105.45, suggesting a potential upside of 45.86%. Given The Descartes Systems Group’s stronger consensus rating and higher probable upside, analysts clearly believe The Descartes Systems Group is more favorable than Celerity Solutions.

Volatility and Risk

Celerity Solutions has a beta of 5.8, meaning that its stock price is 480% more volatile than the S&P 500. Comparatively, The Descartes Systems Group has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500.

Earnings & Valuation

This table compares Celerity Solutions and The Descartes Systems Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Celerity Solutions	N/A	N/A	N/A	N/A	N/A
The Descartes Systems Group	$728.99 million	8.53	$163.77 million	$1.86	38.87

The Descartes Systems Group has higher revenue and earnings than Celerity Solutions.

Institutional and Insider Ownership

77.7% of The Descartes Systems Group shares are held by institutional investors. 32.3% of Celerity Solutions shares are held by insiders. Comparatively, 0.3% of The Descartes Systems Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

The Descartes Systems Group beats Celerity Solutions on 9 of the 11 factors compared between the two stocks.

About Celerity Solutions

Celerity Solutions, Inc. provides enterprise applications solutions. The company offers its applications in various areas, such as finance, human capital management, manufacturing, mergers and acquisitions, sales operations efficiency, supply chain, utilities, and Web retail. Celerity Solutions, Inc. was incorporated in 1982 and is based in Redwood City, California.

About The Descartes Systems Group

The Descartes Systems Group Inc. provides cloud-based logistics and supply chain management solutions worldwide. Its Logistics Technology platform offers a range of modular, interoperable web and wireless logistics management solutions. The company provides a suite of solutions that include routing, mobile, and telematics; transportation management; ecommerce, shipping, and fulfillment; customs and regulatory compliance; global trade intelligence; broker and forwarder enterprise systems; and B2B messaging and connectivity services. It also 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. In addition, the company provides consulting, implementation, and training services, as well as maintenance and support services. It serves transportation providers, such as air, ocean, and truck modes; logistics service providers, including third-party logistics providers, freight forwarders, and customs brokers; and distribution-intensive companies, such as manufacturers, retailers, distributors, and mobile business service providers through subscription, transactional or perpetual license basis. The Descartes Systems Group Inc. was incorporated in 1981 and is headquartered in Waterloo, Canada.