Reviewing The Descartes Systems Group (NASDAQ:DSGX) & Sprinklr (NYSE:CXM)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
The Descartes Systems Group	24.25%	11.66%	9.90%
Sprinklr	2.65%	7.21%	3.56%

Earnings & Valuation

This table compares The Descartes Systems Group and Sprinklr”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Descartes Systems Group	$728.99 million	10.22	$163.77 million	$2.14	40.68
Sprinklr	$857.20 million	1.58	$22.91 million	$0.10	58.35

The Descartes Systems Group has higher earnings, but lower revenue than Sprinklr. The Descartes Systems Group is trading at a lower price-to-earnings ratio than Sprinklr, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and price targets for The Descartes Systems Group and Sprinklr, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Descartes Systems Group	0	3	11	1	2.87
Sprinklr	1	3	3	0	2.29

The Descartes Systems Group currently has a consensus price target of $100.33, suggesting a potential upside of 15.26%. Sprinklr has a consensus price target of $8.21, suggesting a potential upside of 40.78%. Given Sprinklr’s higher probable upside, analysts clearly believe Sprinklr is more favorable than The Descartes Systems Group.

Institutional & Insider Ownership

77.7% of The Descartes Systems Group shares are held by institutional investors. Comparatively, 40.2% of Sprinklr shares are held by institutional investors. 0.3% of The Descartes Systems Group shares are held by company insiders. Comparatively, 25.2% of Sprinklr shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

The Descartes Systems Group has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, Sprinklr has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500.

Summary

The Descartes Systems Group beats Sprinklr on 10 of the 15 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 Sprinklr

Sprinklr, Inc. provides enterprise cloud software products worldwide. The company operates Unified Customer Experience Management platform, a software that enables customer-facing teams to collaborate across internal silos, communicate across digital channels, and leverage a complete suite of capabilities to deliver customer experiences. Its products include Sprinklr Service, a suite of artificial intelligence (AI) powered products and solutions that unifies customer service across voice, digital, and social channels; Sprinklr Social, a suite of AI-powered products and solutions that unifies social media publishing and engagement across various channels; Sprinklr Insights, a suite of AI-powered products and solutions that unifies consumer, customer, competitive and industry data from a high volume of third-party, second-party and first-party sources; and Sprinklr Marketing, a suite of AI-powered products and solutions that unifies content production and content lifecycle management with paid campaign orchestration across various channels. The company also provides professional, managed, training, and consultancy services. Sprinklr, Inc. was founded in 2009 and is headquartered in New York, New York.