Comprehensive Stock Comparison
Compare The Descartes Systems Group Inc. (DSGX) vs QXO, Inc. (QXO) 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 | QXO | 119.3% revenue growth vs DSGX's 13.6% |
| Value | DSGX | Lower P/E (35.4x vs 61.6x) |
| Quality / Margins | DSGX | 22.1% net margin vs QXO's -4.1% |
| Stability / Safety | DSGX | Beta 0.91 vs QXO's 1.25, lower leverage |
| Dividends | QXO | 71.4% yield; 2-year raise streak; DSGX pays no meaningful dividend |
| Momentum (1Y) | QXO | +88.0% vs DSGX's -40.6% |
| Efficiency (ROA) | DSGX | 8.5% ROA vs QXO's -1.8%, ROIC 13.1% vs -3.1% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
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.
QXO is a business software and consulting firm that provides enterprise resource planning, accounting, and IT managed services to small and medium-sized businesses. It generates revenue through software licensing and subscriptions — primarily from its ERP and business management platforms — supplemented by consulting, training, and technical support services. The company's moat comes from its deep industry specialization in manufacturing and distribution sectors, where it offers integrated solutions that combine software with specialized consulting expertise.
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 — strongest in Financial Metrics and Profitability & Efficiency. 2 categories are tied.
Financial Metrics (TTM)
QXO is the larger business by revenue, generating $6.8B annually — 9.7x DSGX's $702M. DSGX is the more profitable business, keeping 22.1% of every revenue dollar as net income compared to QXO's -4.1%. On growth, QXO holds the edge at +147.8% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | DSGXThe Descartes Sys… | QXOQXO, Inc. |
|---|---|---|
| RevenueTrailing 12 months | $702M | $6.8B |
| EBITDAEarnings before interest/tax | $289M | $60M |
| Net IncomeAfter-tax profit | $155M | -$279M |
| Free Cash FlowCash after capex | $244M | $183M |
| Gross MarginGross profit ÷ Revenue | +73.9% | +23.0% |
| Operating MarginEBIT ÷ Revenue | +28.9% | -3.6% |
| Net MarginNet income ÷ Revenue | +22.1% | -4.1% |
| FCF MarginFCF ÷ Revenue | +34.8% | +2.7% |
| Rev. Growth (YoY)Latest quarter vs prior year | +10.1% | +147.8% |
| EPS Growth (YoY)Latest quarter vs prior year | +19.0% | -7.5% |
Valuation Metrics
On an enterprise value basis, DSGX's 21.4x EV/EBITDA is more attractive than QXO's 107.3x.
| Metric | DSGXThe Descartes Sys… | QXOQXO, Inc. |
|---|---|---|
| Market CapShares × price | $5.7B | $17.0B |
| Enterprise ValueMkt cap + debt − cash | $5.5B | $19.1B |
| Trailing P/EPrice ÷ TTM EPS | 40.40x | -38.02x |
| Forward P/EPrice ÷ next-FY EPS est. | 35.37x | 61.60x |
| PEG RatioP/E ÷ EPS growth rate | 1.37x | — |
| EV / EBITDAEnterprise value multiple | 21.35x | 107.27x |
| Price / SalesMarket cap ÷ Revenue | 8.75x | 2.48x |
| Price / BookPrice ÷ Book value/share | 4.18x | 0.02x |
| Price / FCFMarket cap ÷ FCF | 26.80x | 92.62x |
Profitability & Efficiency
DSGX delivers a 10.0% return on equity — every $100 of shareholder capital generates $10 in annual profit, vs $-3 for QXO. DSGX carries lower financial leverage with a 0.01x debt-to-equity ratio, signaling a more conservative balance sheet compared to QXO's 0.46x. On the Piotroski fundamental quality scale (0–9), DSGX scores 5/9 vs QXO's 4/9, reflecting solid financial health.
| Metric | DSGXThe Descartes Sys… | QXOQXO, Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +10.0% | -2.9% |
| ROA (TTM)Return on assets | +8.5% | -1.8% |
| ROICReturn on invested capital | +13.1% | -3.1% |
| ROCEReturn on capital employed | +13.4% | -2.5% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 4 |
| Debt / EquityFinancial leverage | 0.01x | 0.46x |
| Net DebtTotal debt minus cash | -$228M | $2.1B |
| Cash & Equiv.Liquid assets | $236M | $2.4B |
| Total DebtShort + long-term debt | $8M | $4.5B |
| Interest CoverageEBIT ÷ Interest expense | 208.90x | -1.79x |
Total Returns (with DRIP)
A $10,000 investment in DSGX five years ago would be worth $10,886 today (with dividends reinvested), compared to $1,422 for QXO. Over the past 12 months, QXO leads with a +88.0% total return vs DSGX's -40.6%. The 3-year compound annual growth rate (CAGR) favors DSGX at -3.5% vs QXO's -38.0% — a key indicator of consistent wealth creation.
| Metric | DSGXThe Descartes Sys… | QXOQXO, Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -22.2% | +21.5% |
| 1-Year ReturnPast 12 months | -40.6% | +88.0% |
| 3-Year ReturnCumulative with dividends | -10.1% | -76.2% |
| 5-Year ReturnCumulative with dividends | +8.9% | -85.8% |
| 10-Year ReturnCumulative with dividends | +287.9% | -47.8% |
| CAGR (3Y)Annualised 3-year return | -3.5% | -38.0% |
Risk & Volatility
DSGX is the less volatile stock with a 0.91 beta — it tends to amplify market swings less than QXO's 1.25 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. QXO currently trades 86.7% 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… | QXOQXO, Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.91x | 1.25x |
| 52-Week HighHighest price in past year | $117.35 | $27.61 |
| 52-Week LowLowest price in past year | $62.56 | $11.97 |
| % of 52W HighCurrent price vs 52-week peak | +56.5% | +86.7% |
| RSI (14)Momentum oscillator 0–100 | 42.9 | 47.5 |
| Avg Volume (50D)Average daily shares traded | 549K | 7.4M |
Analyst Outlook
Wall Street rates DSGX as "Buy" and QXO as "Buy". Consensus price targets imply 67.4% upside for DSGX (target: $111) vs 25.3% for QXO (target: $30). QXO is the only dividend payer here at 71.38% yield — a key consideration for income-focused portfolios.
| Metric | DSGXThe Descartes Sys… | QXOQXO, Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $110.89 | $30.00 |
| # AnalystsCovering analysts | 13 | 3 |
| Dividend YieldAnnual dividend ÷ price | — | +71.4% |
| Dividend StreakConsecutive years of raises | — | 2 |
| Dividend / ShareAnnual DPS | — | $17.10 |
| 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% |
| QXO, Inc. (QXO) | 100 | 11.62 | -88.4% |
The Descartes Syste… (DSGX) returned +9% over 5 years vs QXO, Inc. (QXO)'s -86%. 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% |
| QXO, Inc. (QXO) | $34M | $6.8B | +19952.2% |
QXO, Inc.'s revenue grew from $34M (2016) to $6.8B (2025) — a 80.2% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| The Descartes Syste… (DSGX) | 11.7% | 22.0% | +88.1% |
| QXO, Inc. (QXO) | 10.1% | -4.1% | -140.5% |
QXO, Inc.'s net margin went from 10% (2016) to -4% (2025).
Chart 4P/E Ratio History — 8 Years
| Stock | 2017 | 2024 | Change |
|---|---|---|---|
| The Descartes Syste… (DSGX) | 81.1 | 69.3 | -14.5% |
The Descartes Systems Group Inc. has traded in a 59x–96x P/E range over 8 years; current trailing P/E is ~40x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| The Descartes Syste… (DSGX) | 0.31 | 1.64 | +429.0% |
| QXO, Inc. (QXO) | 6.15 | -0.63 | -110.2% |
QXO, Inc.'s EPS grew from $6.15 (2016) to $-0.63 (2025) — a NaN% CAGR.
Chart 6Free Cash Flow — 5 Years
The Descartes Systems Group Inc. generated $213M FCF in 2024 (+24% vs 2021). QXO, Inc. generated $183M FCF in 2025 (+164540% vs 2021).
DSGX vs QXO: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is DSGX or QXO 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 QXO?
On forward P/E, The Descartes Systems Group Inc. is actually cheaper at 35.4x.
03Which is the better long-term investment — DSGX or QXO?
Over the past 5 years, The Descartes Systems Group Inc. (DSGX) delivered a total return of +8.9%, compared to -85.8% for QXO, Inc. (QXO). 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: DSGX returned +287.9% versus QXO's -47.8%. 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 QXO?
By beta (market sensitivity over 5 years), The Descartes Systems Group Inc. (DSGX) is the lower-risk stock at 0.91β versus QXO, Inc.'s 1.25β — meaning QXO is approximately 38% 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 46% for QXO, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — DSGX or QXO?
The Descartes Systems Group Inc. (DSGX) is the more profitable company, earning 22.0% net margin versus -4.1% for QXO, 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 -3.6% for QXO. 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 QXO more undervalued right now?
On forward earnings alone, The Descartes Systems Group Inc. (DSGX) trades at 35.4x forward P/E versus 61.6x for QXO, Inc. — 26.2x 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 QXO?
In this comparison, QXO (71.4% yield) pays a dividend. DSGX does not pay a meaningful dividend and should not be held primarily for income.
08Is DSGX or QXO 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). Both have compounded well over 10 years (DSGX: +287.9%, QXO: -47.8%), 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 QXO?
These companies operate in different sectors (DSGX (Technology) and QXO (Industrials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced. In terms of investment character: DSGX is a small-cap quality compounder stock; QXO is a mid-cap income-oriented stock. QXO pays a dividend while DSGX does not, making them suitable for different income and tax situations. 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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