Comprehensive Stock Comparison
Compare The Descartes Systems Group Inc. (DSGX) vs Shopify Inc. (SHOP) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | SHOP | 30.1% revenue growth vs DSGX's 13.6% |
| Value | DSGX | Lower P/E (35.4x vs 65.9x), PEG 1.20 vs 2.25 |
| Quality / Margins | DSGX | 22.1% net margin vs SHOP's 10.7% |
| Stability / Safety | DSGX | Beta 0.91 vs SHOP's 2.23, lower leverage |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | SHOP | +7.8% vs DSGX's -40.6% |
| Efficiency (ROA) | DSGX | 8.5% ROA vs SHOP's 8.1%, ROIC 13.1% vs 9.4% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Descartes Systems Group provides cloud-based logistics and supply chain management software that connects shippers, carriers, and customs authorities on a global network. It generates revenue primarily through subscription fees for its modular SaaS platform — which includes routing, transportation management, customs compliance, and trade data services — with maintenance and support fees making up the remainder. The company's key advantage is its extensive logistics network effect, where the value of its platform increases as more participants join, creating significant switching costs and barriers to entry.
Shopify is a comprehensive commerce platform that enables businesses of all sizes to create online stores, manage sales across multiple channels, and handle operations like payments, shipping, and inventory. It generates revenue primarily through subscription fees for its platform tiers — which account for about 30% of revenue — and merchant solutions like payment processing, shipping, and capital advances that make up the remaining 70%. The company's key advantage is its integrated ecosystem that combines easy-to-use store creation tools with a vast app marketplace and fulfillment network, creating high switching costs for merchants as they grow their businesses.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
DSGX leads in 3 of 6 categories (Financial Metrics, Valuation Metrics). SHOP leads in 1 (Total Returns). 1 tied.
Financial Metrics (TTM)
SHOP is the larger business by revenue, generating $11.6B annually — 16.5x DSGX's $702M. DSGX is the more profitable business, keeping 22.1% of every revenue dollar as net income compared to SHOP's 10.7%. On growth, SHOP holds the edge at +30.6% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | DSGXThe Descartes Sys… | SHOPShopify Inc. |
|---|---|---|
| RevenueTrailing 12 months | $702M | $11.6B |
| EBITDAEarnings before interest/tax | $289M | $1.5B |
| Net IncomeAfter-tax profit | $155M | $1.2B |
| Free Cash FlowCash after capex | $244M | $2.0B |
| Gross MarginGross profit ÷ Revenue | +73.9% | +48.1% |
| Operating MarginEBIT ÷ Revenue | +28.9% | +12.7% |
| Net MarginNet income ÷ Revenue | +22.1% | +10.7% |
| FCF MarginFCF ÷ Revenue | +34.8% | +17.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | +10.1% | +30.6% |
| EPS Growth (YoY)Latest quarter vs prior year | +19.0% | -42.0% |
Valuation Metrics
At 40.4x trailing earnings, DSGX trades at a 69% valuation discount to SHOP's 128.4x P/E. Adjusting for growth (PEG ratio), DSGX offers better value at 1.37x vs SHOP's 4.38x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | DSGXThe Descartes Sys… | SHOPShopify Inc. |
|---|---|---|
| Market CapShares × price | $5.7B | $157.4B |
| Enterprise ValueMkt cap + debt − cash | $5.5B | $156.1B |
| Trailing P/EPrice ÷ TTM EPS | 40.40x | 128.44x |
| Forward P/EPrice ÷ next-FY EPS est. | 35.37x | 65.90x |
| PEG RatioP/E ÷ EPS growth rate | 1.37x | 4.38x |
| EV / EBITDAEnterprise value multiple | 21.35x | 104.11x |
| Price / SalesMarket cap ÷ Revenue | 8.75x | 13.62x |
| Price / BookPrice ÷ Book value/share | 4.18x | 11.69x |
| Price / FCFMarket cap ÷ FCF | 26.80x | 78.44x |
Profitability & Efficiency
DSGX delivers a 10.0% return on equity — every $100 of shareholder capital generates $10 in annual profit, vs $9 for SHOP. DSGX carries lower financial leverage with a 0.01x debt-to-equity ratio, signaling a more conservative balance sheet compared to SHOP's 0.01x. On the Piotroski fundamental quality scale (0–9), SHOP scores 6/9 vs DSGX's 5/9, reflecting solid financial health.
| Metric | DSGXThe Descartes Sys… | SHOPShopify Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +10.0% | +9.1% |
| ROA (TTM)Return on assets | +8.5% | +8.1% |
| ROICReturn on invested capital | +13.1% | +9.4% |
| ROCEReturn on capital employed | +13.4% | +11.0% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 6 |
| Debt / EquityFinancial leverage | 0.01x | 0.01x |
| Net DebtTotal debt minus cash | -$228M | -$1.4B |
| Cash & Equiv.Liquid assets | $236M | $1.5B |
| Total DebtShort + long-term debt | $8M | $188M |
| Interest CoverageEBIT ÷ Interest expense | 208.90x | — |
Total Returns (with DRIP)
A $10,000 investment in DSGX five years ago would be worth $10,886 today (with dividends reinvested), compared to $9,216 for SHOP. Over the past 12 months, SHOP leads with a +7.8% total return vs DSGX's -40.6%. The 3-year compound annual growth rate (CAGR) favors SHOP at 43.2% vs DSGX's -3.5% — a key indicator of consistent wealth creation.
| Metric | DSGXThe Descartes Sys… | SHOPShopify Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -22.2% | -23.2% |
| 1-Year ReturnPast 12 months | -40.6% | +7.8% |
| 3-Year ReturnCumulative with dividends | -10.1% | +193.5% |
| 5-Year ReturnCumulative with dividends | +8.9% | -7.8% |
| 10-Year ReturnCumulative with dividends | +287.9% | +5294.6% |
| CAGR (3Y)Annualised 3-year return | -3.5% | +43.2% |
Risk & Volatility
DSGX is the less volatile stock with a 0.91 beta — it tends to amplify market swings less than SHOP's 2.23 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. SHOP currently trades 66.3% from its 52-week high vs DSGX's 56.5% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | DSGXThe Descartes Sys… | SHOPShopify Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.91x | 2.23x |
| 52-Week HighHighest price in past year | $117.35 | $182.19 |
| 52-Week LowLowest price in past year | $62.56 | $69.84 |
| % of 52W HighCurrent price vs 52-week peak | +56.5% | +66.3% |
| RSI (14)Momentum oscillator 0–100 | 42.9 | 48.7 |
| Avg Volume (50D)Average daily shares traded | 549K | 10.0M |
Analyst Outlook
Wall Street rates DSGX as "Buy" and SHOP as "Buy". Consensus price targets imply 67.4% upside for DSGX (target: $111) vs 36.8% for SHOP (target: $165).
| Metric | DSGXThe Descartes Sys… | SHOPShopify Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $110.89 | $165.16 |
| # AnalystsCovering analysts | 13 | 63 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| The Descartes Syste… (DSGX) | 100 | 172.25 | +72.3% |
| Shopify Inc. (SHOP) | 100 | 270.68 | +170.7% |
The Descartes Syste… (DSGX) returned +9% over 5 years vs Shopify Inc. (SHOP)'s -8%. A $10,000 investment in DSGX 5 years ago would be worth $10,886 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| The Descartes Syste… (DSGX) | $204M | $651M | +219.5% |
| Shopify Inc. (SHOP) | $389M | $11.6B | +2868.2% |
Shopify Inc.'s revenue grew from $389M (2016) to $11.6B (2025) — a 45.8% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| The Descartes Syste… (DSGX) | 11.7% | 22.0% | +88.1% |
| Shopify Inc. (SHOP) | -9.1% | 10.7% | +217.3% |
Shopify Inc.'s net margin went from -9% (2016) to 11% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| The Descartes Syste… (DSGX) | 81.1 | 69.3 | -14.5% |
| Shopify Inc. (SHOP) | 435.4 | 171.2 | -60.7% |
The Descartes Systems Group Inc. has traded in a 59x–96x P/E range over 8 years; current trailing P/E is ~40x. Shopify Inc. has traded in a 61x–435x P/E range over 4 years; current trailing P/E is ~128x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| The Descartes Syste… (DSGX) | 0.31 | 1.64 | +429.0% |
| Shopify Inc. (SHOP) | -0.04 | 0.94 | +2332.8% |
Shopify Inc.'s EPS grew from $-0.04 (2016) to $0.94 (2025).
Chart 6Free Cash Flow — 5 Years
The Descartes Systems Group Inc. generated $213M FCF in 2024 (+24% vs 2021). Shopify Inc. generated $2B FCF in 2025 (+314% vs 2021).
DSGX vs SHOP: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is DSGX or SHOP a better buy right now?
The Descartes Systems Group Inc. (DSGX) offers the better valuation at 40.4x trailing P/E (35.4x forward), making it the more compelling value choice. Analysts rate The Descartes Systems Group Inc. (DSGX) a "Buy" — based on 13 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — DSGX or SHOP?
On trailing P/E, The Descartes Systems Group Inc. (DSGX) is the cheapest at 40.4x versus Shopify Inc. at 128.4x. On forward P/E, The Descartes Systems Group Inc. is actually cheaper at 35.4x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: The Descartes Systems Group Inc. wins at 1.20x versus Shopify Inc.'s 2.25x — a reasonable growth-adjusted valuation.
03Which is the better long-term investment — DSGX or SHOP?
Over the past 5 years, The Descartes Systems Group Inc. (DSGX) delivered a total return of +8.9%, compared to -7.8% for Shopify Inc. (SHOP). A $10,000 investment in DSGX five years ago would be worth approximately $11K today (assuming dividends reinvested). Over 10 years, the gap is even starker: SHOP returned +52.9% versus DSGX's +287.9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — DSGX or SHOP?
By beta (market sensitivity over 5 years), The Descartes Systems Group Inc. (DSGX) is the lower-risk stock at 0.91β versus Shopify Inc.'s 2.23β — meaning SHOP is approximately 146% more volatile than DSGX relative to the S&P 500. On balance sheet safety, The Descartes Systems Group Inc. (DSGX) carries a lower debt/equity ratio of 1% versus 1% for Shopify Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — DSGX or SHOP?
The Descartes Systems Group Inc. (DSGX) is the more profitable company, earning 22.0% net margin versus 10.7% for Shopify Inc. — meaning it keeps 22.0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: DSGX leads at 27.8% versus 12.7% for SHOP. At the gross margin level — before operating expenses — DSGX leads at 75.6%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is DSGX or SHOP more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, The Descartes Systems Group Inc. (DSGX) is the more undervalued stock at a PEG of 1.20x versus Shopify Inc.'s 2.25x. A PEG below 1.5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, The Descartes Systems Group Inc. (DSGX) trades at 35.4x forward P/E versus 65.9x for Shopify Inc. — 30.5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for DSGX: 67.4% to $110.89.
07Which pays a better dividend — DSGX or SHOP?
None of the stocks in this comparison currently pay a material dividend. All are effectively zero-yield and should be held for capital appreciation rather than income.
08Is DSGX or SHOP better for a retirement portfolio?
For long-horizon retirement investors, The Descartes Systems Group Inc. (DSGX) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.91), +287.9% 10Y return). Shopify Inc. (SHOP) carries a higher beta of 2.23 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (DSGX: +287.9%, SHOP: +52.9%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between DSGX and SHOP?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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