Comprehensive Stock Comparison
Compare The Descartes Systems Group Inc. (DSGX) vs SAP SE (SAP) 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 | DSGX | 13.6% revenue growth vs SAP's 3.4% |
| Value | SAP | Lower P/E (27.8x vs 35.4x) |
| Quality / Margins | DSGX | 22.1% net margin vs SAP's 19.9% |
| Stability / Safety | SAP | Beta 0.86 vs DSGX's 0.91 |
| Dividends | SAP | 1.3% yield; 2-year raise streak; DSGX pays no meaningful dividend |
| Momentum (1Y) | SAP | -25.8% vs DSGX's -40.6% |
| Efficiency (ROA) | SAP | 10.4% ROA vs DSGX's 8.5%, ROIC 16.1% vs 13.1% |
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.
SAP is a global enterprise software company that provides business applications, technology platforms, and cloud services for organizations worldwide. It generates revenue primarily through software licenses and cloud subscriptions — with cloud services now representing over 40% of total revenue — along with consulting and support services. The company's key advantage is its deep integration across business functions — from finance to supply chain to HR — creating switching costs and network effects within its large enterprise customer base.
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
SAP leads in 4 of 6 categories (Valuation Metrics, Profitability & Efficiency). DSGX leads in 1 (Financial Metrics).
Financial Metrics (TTM)
SAP is the larger business by revenue, generating $36.7B annually — 52.3x DSGX's $702M. Profitability is closely matched — net margins range from 22.1% (DSGX) to 19.9% (SAP). On growth, DSGX holds the edge at +10.1% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | DSGXThe Descartes Sys… | SAPSAP SE |
|---|---|---|
| RevenueTrailing 12 months | $702M | $36.7B |
| EBITDAEarnings before interest/tax | $289M | $11.5B |
| Net IncomeAfter-tax profit | $155M | $7.3B |
| Free Cash FlowCash after capex | $244M | $8.4B |
| Gross MarginGross profit ÷ Revenue | +73.9% | +73.3% |
| Operating MarginEBIT ÷ Revenue | +28.9% | +27.0% |
| Net MarginNet income ÷ Revenue | +22.1% | +19.9% |
| FCF MarginFCF ÷ Revenue | +34.8% | +22.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | +10.1% | +2.3% |
| EPS Growth (YoY)Latest quarter vs prior year | +19.0% | +14.7% |
Valuation Metrics
At 28.5x trailing earnings, SAP trades at a 29% valuation discount to DSGX's 40.4x P/E. Adjusting for growth (PEG ratio), DSGX offers better value at 1.37x vs SAP's 4.32x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | DSGXThe Descartes Sys… | SAPSAP SE |
|---|---|---|
| Market CapShares × price | $5.7B | $234.7B |
| Enterprise ValueMkt cap + debt − cash | $5.5B | $234.5B |
| Trailing P/EPrice ÷ TTM EPS | 40.40x | 28.52x |
| Forward P/EPrice ÷ next-FY EPS est. | 35.37x | 27.77x |
| PEG RatioP/E ÷ EPS growth rate | 1.37x | 4.32x |
| EV / EBITDAEnterprise value multiple | 21.35x | 17.84x |
| Price / SalesMarket cap ÷ Revenue | 8.75x | 5.63x |
| Price / BookPrice ÷ Book value/share | 4.18x | 4.44x |
| Price / FCFMarket cap ÷ FCF | 26.80x | 25.07x |
Profitability & Efficiency
SAP delivers a 16.2% return on equity — every $100 of shareholder capital generates $16 in annual profit, vs $10 for DSGX. DSGX carries lower financial leverage with a 0.01x debt-to-equity ratio, signaling a more conservative balance sheet compared to SAP's 0.18x. On the Piotroski fundamental quality scale (0–9), SAP scores 9/9 vs DSGX's 5/9, reflecting strong financial health.
| Metric | DSGXThe Descartes Sys… | SAPSAP SE |
|---|---|---|
| ROE (TTM)Return on equity | +10.0% | +16.2% |
| ROA (TTM)Return on assets | +8.5% | +10.4% |
| ROICReturn on invested capital | +13.1% | +16.1% |
| ROCEReturn on capital employed | +13.4% | +18.3% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 9 |
| Debt / EquityFinancial leverage | 0.01x | 0.18x |
| Net DebtTotal debt minus cash | -$228M | -$149M |
| Cash & Equiv.Liquid assets | $236M | $8.2B |
| Total DebtShort + long-term debt | $8M | $8.1B |
| Interest CoverageEBIT ÷ Interest expense | 208.90x | 8.94x |
Total Returns (with DRIP)
A $10,000 investment in SAP five years ago would be worth $17,166 today (with dividends reinvested), compared to $10,886 for DSGX. Over the past 12 months, SAP leads with a -25.8% total return vs DSGX's -40.6%. The 3-year compound annual growth rate (CAGR) favors SAP at 22.4% vs DSGX's -3.5% — a key indicator of consistent wealth creation.
| Metric | DSGXThe Descartes Sys… | SAPSAP SE |
|---|---|---|
| YTD ReturnYear-to-date | -22.2% | -14.9% |
| 1-Year ReturnPast 12 months | -40.6% | -25.8% |
| 3-Year ReturnCumulative with dividends | -10.1% | +83.4% |
| 5-Year ReturnCumulative with dividends | +8.9% | +71.7% |
| 10-Year ReturnCumulative with dividends | +287.9% | +193.8% |
| CAGR (3Y)Annualised 3-year return | -3.5% | +22.4% |
Risk & Volatility
SAP is the less volatile stock with a 0.86 beta — it tends to amplify market swings less than DSGX's 0.91 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. SAP currently trades 64.3% 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… | SAPSAP SE |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.91x | 0.86x |
| 52-Week HighHighest price in past year | $117.35 | $313.28 |
| 52-Week LowLowest price in past year | $62.56 | $189.22 |
| % of 52W HighCurrent price vs 52-week peak | +56.5% | +64.3% |
| RSI (14)Momentum oscillator 0–100 | 42.9 | 45.3 |
| Avg Volume (50D)Average daily shares traded | 549K | 2.4M |
Analyst Outlook
Wall Street rates DSGX as "Buy" and SAP as "Buy". Consensus price targets imply 106.1% upside for SAP (target: $415) vs 67.4% for DSGX (target: $111). SAP is the only dividend payer here at 1.31% yield — a key consideration for income-focused portfolios.
| Metric | DSGXThe Descartes Sys… | SAPSAP SE |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $110.89 | $415.33 |
| # AnalystsCovering analysts | 13 | 43 |
| Dividend YieldAnnual dividend ÷ price | — | +1.3% |
| Dividend StreakConsecutive years of raises | — | 2 |
| Dividend / ShareAnnual DPS | — | $2.24 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +0.9% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Feb 20 | Feb 26 | Change |
|---|---|---|---|
| The Descartes Syste… (DSGX) | 100 | 176.09 | +76.1% |
| SAP SE (SAP) | 100 | 167.7 | +67.7% |
SAP SE (SAP) returned +72% over 5 years vs The Descartes Syste… (DSGX)'s +9%. A $10,000 investment in SAP 5 years ago would be worth $17,166 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| The Descartes Syste… (DSGX) | $204M | $651M | +219.5% |
| SAP SE (SAP) | $22.1B | $35.3B | +60.2% |
SAP SE's revenue grew from $22.1B (2016) to $35.3B (2025) — a 5.4% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| The Descartes Syste… (DSGX) | 11.7% | 22.0% | +88.1% |
| SAP SE (SAP) | 16.5% | 19.9% | +20.6% |
SAP SE's net margin went from 17% (2016) to 20% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| The Descartes Syste… (DSGX) | 81.1 | 69.3 | -14.5% |
| SAP SE (SAP) | 33.5 | 40.6 | +21.2% |
The Descartes Systems Group Inc. has traded in a 59x–96x P/E range over 8 years; current trailing P/E is ~40x. SAP SE has traded in a 29x–93x P/E range over 9 years; current trailing P/E is ~29x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| The Descartes Syste… (DSGX) | 0.31 | 1.64 | +429.0% |
| SAP SE (SAP) | 3.03 | 5.99 | +97.7% |
SAP SE's EPS grew from $3.03 (2016) to $5.99 (2025) — a 8% CAGR.
Chart 6Free Cash Flow — 5 Years
The Descartes Systems Group Inc. generated $213M FCF in 2024 (+24% vs 2021). SAP SE generated $8B FCF in 2025 (+44% vs 2021).
DSGX vs SAP: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is DSGX or SAP a better buy right now?
SAP SE (SAP) offers the better valuation at 28.5x trailing P/E (27.8x 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 SAP?
On trailing P/E, SAP SE (SAP) is the cheapest at 28.5x versus The Descartes Systems Group Inc. at 40.4x. On forward P/E, SAP SE is actually cheaper at 27.8x. 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 SAP SE's 4.20x — a reasonable growth-adjusted valuation.
03Which is the better long-term investment — DSGX or SAP?
Over the past 5 years, SAP SE (SAP) delivered a total return of +71.7%, compared to +8.9% for The Descartes Systems Group Inc. (DSGX). A $10,000 investment in SAP five years ago would be worth approximately $17K today (assuming dividends reinvested). Over 10 years, the gap is even starker: DSGX returned +287.9% versus SAP's +193.8%. 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 SAP?
By beta (market sensitivity over 5 years), SAP SE (SAP) is the lower-risk stock at 0.86β versus The Descartes Systems Group Inc.'s 0.91β — meaning DSGX is approximately 6% more volatile than SAP 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 18% for SAP SE — giving it more financial flexibility in a downturn.
05Which has better profit margins — DSGX or SAP?
The Descartes Systems Group Inc. (DSGX) is the more profitable company, earning 22.0% net margin versus 19.9% for SAP SE — meaning it keeps 22.0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: SAP leads at 28.0% versus 27.8% for DSGX. 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 SAP 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 SAP SE's 4.20x. A PEG below 1.5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, SAP SE (SAP) trades at 27.8x forward P/E versus 35.4x for The Descartes Systems Group Inc. — 7.6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for SAP: 106.1% to $415.33.
07Which pays a better dividend — DSGX or SAP?
In this comparison, SAP (1.3% yield) pays a dividend. DSGX does not pay a meaningful dividend and should not be held primarily for income.
08Is DSGX or SAP better for a retirement portfolio?
For long-horizon retirement investors, SAP SE (SAP) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.86), 1.3% yield, +193.8% 10Y return). Both have compounded well over 10 years (SAP: +193.8%, DSGX: +287.9%), 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 SAP?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. SAP 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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