Direct investigation of SecureWorks (NASDAQ:SCWX) and The Descartes Systems Group (NASDAQ:DSGX)



SecureWorks (NASDAQ:SCWX – Get Rating) and The Descartes Systems Group (NASDAQ:DSGX – Get Rating) are both IT and technology companies, but which company is better? We’ll compare the two companies based on valuation strength, risk, earnings, dividends, institutional ownership, profitability, and analyst recommendations.

Analyst Notes

This is a summary of current valuations and price targets for SecureWorks and The Descartes Systems Group, as provided by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
SecureWorks 3 3 0 0 1.50
The Descartes Systems Group 0 3 5 0 2.63

SecureWorks currently has a consensus price target of $15.25, indicating a potential upside of 44.14%. Descartes Systems Group has a consensus price target of $89.86, indicating upside potential of 52.51%. Given Descartes Systems Group’s stronger consensus rating and higher likely upside, analysts clearly believe Descartes Systems Group is more favorable than SecureWorks.

Insider and Institutional Ownership

11.9% of SecureWorks shares are held by institutional investors. In comparison, 72.4% of Descartes Systems Group shares are held by institutional investors. 86.5% of SecureWorks stock is held by insiders. In comparison, 0.3% of Groupe Descartes Systems shares are held by insiders. Strong institutional ownership indicates that hedge funds, large fund managers, and endowments believe a company will outperform the market over the long term.

Profitability

This table compares the net margins, return on equity and return on assets of SecureWorks and The Descartes Systems Group.

Net margins Return on equity return on assets
SecureWorks -7.43% -2.38% -1.58%
The Descartes Systems Group 20.32% 8.86% 7.54%

Valuation and benefits

This table compares the gross revenue, earnings per share (EPS), and valuation of SecureWorks and The Descartes Systems Group.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
SecureWorks $535.21 million 1.67 -$39.79 million ($0.48) -22.04
The Descartes Systems Group $424.69 million 11.76 $86.28 million $1.00 58.92

The Descartes Systems group has lower revenues, but higher profits than SecureWorks. SecureWorks trades at a lower price-to-earnings ratio than The Descartes Systems Group, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

SecureWorks has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. In comparison, The Descartes Systems Group has a beta of 1.12, indicating that its stock price stock is 12% more volatile than the S&P 500.

Summary

Groupe Descartes Systems beats SecureWorks on 12 of the 14 factors compared between the two stocks.

Secure Works Company Profile (Get a rating)

SecureWorks Corp., through its subsidiaries, provides technology-driven information security solutions to protect customers in the United States and around the world. The Company’s solutions include software-as-a-service solutions, managed security services and professional services, including incident response and security risk consulting services. Its solutions enable companies to prevent security breaches, detect malicious activity, respond quickly to security breaches and identify emerging threats. The company sells its solutions primarily through its direct sales organization, as well as through referral agents, regional value-added resellers and trade associations. It serves clients in a range of industries, including financial services, manufacturing, technology, retail, insurance, utilities and healthcare sectors. The company was previously known as SecureWorks Holding Corporation and changed its name to SecureWorks Corp. in November 2015. SecureWorks Corp. was founded in 1999 and is headquartered in Atlanta, Georgia. SecureWorks Corp. is a subsidiary of Dell Inc.

Descartes Systems Group Company Profile (Get a rating)

The Descartes Systems Group logoGroupe Descartes Systems Inc. provides cloud-based logistics and supply chain management business process solutions that focus on improving the productivity, performance and safety of intensive businesses. logistics all over the world. Its logistics technology platform offers a suite of modular, cloud-based, interoperable, web-based and wireless logistics management applications that unites a community of logistics-focused parties, enabling them to do business. The company provides a suite of solutions that include routing, mobile telephony and telematics; managing transportation and enabling e-commerce; customs and regulatory compliance; commercial data; global logistics network services; and the business systems of brokers and freight forwarders. It offers its customers to use its modular, software-as-a-service and data solutions to route, plan, track and measure delivery resources; plan, allocate and execute shipments; assess, verify and pay transportation bills; access and analyze global trade data; research and perform calculations of commercial duties and tariffs; submit customs and security documents for imports and exports; and various other logistical processes. The company also provides cloud-based e-commerce warehouse management solutions; consulting, implementation and training services; and maintenance and support services. It mainly focuses on transportation providers, logistics service providers and intensive distribution companies, as well as manufacturers, retailers, distributors and mobile business service providers. The company was incorporated in 1981 and is headquartered in Waterloo, Canada.



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