The Descartes Systems Group (NASDAQ:DSGX) versus Elcom International (OTCMKTS:ELCO) Critical Survey

The Descartes Systems Group (NASDAQ:DSGX) and Elcom International (OTCMKTS:ELCO) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and price targets for The Descartes Systems Group and Elcom International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Descartes Systems Group	0	3	9	1	2.85
Elcom International	0	0	0	0	0.00

The Descartes Systems Group presently has a consensus price target of $108.64, suggesting a potential upside of 53.11%. Given The Descartes Systems Group’s stronger consensus rating and higher probable upside, equities analysts plainly believe The Descartes Systems Group is more favorable than Elcom International.

Profitability

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

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

Volatility and Risk

The Descartes Systems Group has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, Elcom International has a beta of 0.23, indicating that its stock price is 77% less volatile than the S&P 500.

Insider & Institutional Ownership

77.7% of The Descartes Systems Group shares are owned by institutional investors. 0.3% of The Descartes Systems Group shares are owned by company insiders. Comparatively, 13.6% of Elcom International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares The Descartes Systems Group and Elcom International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Descartes Systems Group	$728.99 million	8.37	$163.77 million	$1.86	38.15
Elcom International	N/A	N/A	N/A	N/A	N/A

The Descartes Systems Group has higher revenue and earnings than Elcom International.

Summary

The Descartes Systems Group beats Elcom International on 10 of the 11 factors compared between the two stocks.

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.

About Elcom International

Elcom International Inc. provides cloud based e-procurement solutions worldwide. It offers Procure to Pay solutions to publish and manage supplier content, connect to buyers, and analyze spend and procurement processes; eInvoicing solutions to send and receive eInvoices with supplier adoption guaranteed; and sourcing functions to investigate potential suppliers on a local and global basis. The company also provides services for buyers, including catalog processing, development of punchout catalogs, and to integrate Elcom’s PECOS solution into existing purchasing processes; and services for suppliers, such as onboarding of new suppliers to utilize the solution, access to demand generating activities, and to access information and bids that relate to products and services. It offers eProcurement solutions for governments, educational institutions, healthcare organizations, private enterprises, buying groups. Elcom International Inc. was founded in 1992 and is based in Braintree, Massachusetts.