Financial Review: The Descartes Systems Group (NASDAQ:DSGX) versus Nvni Group (NASDAQ:NVNI)

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

Risk and Volatility

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nvni Group	$179.19 million	0.01	-$51.02 million	N/A	N/A
The Descartes Systems Group	$651.00 million	13.30	$115.91 million	$1.65	61.30

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

Analyst Ratings

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

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

The Descartes Systems Group has a consensus target price of $120.33, indicating a potential upside of 18.97%. Given The Descartes Systems Group’s stronger consensus rating and higher probable upside, analysts clearly believe The Descartes Systems Group is more favorable than Nvni Group.

Profitability

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

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

Institutional and Insider Ownership

0.5% of Nvni Group shares are owned by institutional investors. Comparatively, 77.7% of The Descartes Systems Group shares are owned by institutional investors. 20.0% of Nvni Group shares are owned by insiders. Comparatively, 0.3% of The Descartes Systems Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

The Descartes Systems Group beats Nvni Group on 12 of the 13 factors compared between the two stocks.

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.

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.