Financial Analysis: Nvni Group (NASDAQ:NVNI) vs. The Descartes Systems Group (NASDAQ:DSGX)

The Descartes Systems Group (NASDAQ:DSGX) and Nvni Group (NASDAQ:NVNI) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Insider & Institutional Ownership

77.7% of The Descartes Systems Group shares are owned by institutional investors. Comparatively, 0.5% of Nvni Group shares are owned by institutional investors. 0.3% of The Descartes Systems Group shares are owned by company insiders. Comparatively, 20.0% of Nvni Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Descartes Systems Group	$651.00 million	13.16	$115.91 million	$1.65	60.65
Nvni Group	$179.19 million	0.01	-$51.02 million	N/A	N/A

The Descartes Systems Group has higher revenue and earnings than Nvni Group.

Analyst Ratings

This is a breakdown of current recommendations and price targets for The Descartes Systems Group and Nvni Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Descartes Systems Group	0	4	9	1	2.79
Nvni Group	0	0	0	0	0.00

The Descartes Systems Group presently has a consensus target price of $120.33, indicating a potential upside of 20.25%. Given The Descartes Systems Group’s stronger consensus rating and higher possible upside, research analysts plainly believe The Descartes Systems Group is more favorable than Nvni Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
The Descartes Systems Group	21.80%	10.65%	8.88%
Nvni Group	N/A	N/A	N/A

Risk & Volatility

The Descartes Systems Group has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, Nvni Group has a beta of -0.69, indicating that its share price is 169% less volatile than the S&P 500.

Summary

The Descartes Systems Group beats Nvni Group on 12 of the 13 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 Nvni Group

Nvni Group Limited provides a business to business SaaS platform that offers cloud solutions. The company was incorporated in 2019 and is based in São Paulo, Brazil.