Comprehensive Stock Comparison
Compare The Descartes Systems Group Inc. (DSGX) vs Tyler Technologies, Inc. (TYL) 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 TYL's 9.5% |
| Value | TYL | Lower P/E (28.3x vs 35.4x) |
| Quality / Margins | DSGX | 22.1% net margin vs TYL's 13.5% |
| Stability / Safety | TYL | Beta 0.68 vs DSGX's 0.91 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | DSGX | -40.6% vs TYL's -41.7% |
| Efficiency (ROA) | DSGX | 8.5% ROA vs TYL's 5.6%, ROIC 13.1% vs 6.7% |
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.
Tyler Technologies is a software company that provides integrated information management solutions exclusively for the public sector — including government agencies, courts, schools, and utilities. It generates revenue primarily through enterprise software licensing and maintenance fees (roughly 70% of revenue), appraisal and tax software services (about 20%), and digital government services through its NIC segment (around 10%). The company's key competitive advantage is its deep specialization in public sector workflows — creating high switching costs through mission-critical, integrated systems that span entire government operations.
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). TYL leads in 1 (Risk & Volatility). 1 tied.
Financial Metrics (TTM)
TYL is the larger business by revenue, generating $2.3B annually — 3.3x DSGX's $702M. DSGX is the more profitable business, keeping 22.1% of every revenue dollar as net income compared to TYL's 13.5%. On growth, DSGX holds the edge at +10.1% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | DSGXThe Descartes Sys… | TYLTyler Technologie… |
|---|---|---|
| RevenueTrailing 12 months | $702M | $2.3B |
| EBITDAEarnings before interest/tax | $289M | $462M |
| Net IncomeAfter-tax profit | $155M | $316M |
| Free Cash FlowCash after capex | $244M | $638M |
| Gross MarginGross profit ÷ Revenue | +73.9% | +45.3% |
| Operating MarginEBIT ÷ Revenue | +28.9% | +15.3% |
| Net MarginNet income ÷ Revenue | +22.1% | +13.5% |
| FCF MarginFCF ÷ Revenue | +34.8% | +27.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | +10.1% | +6.3% |
| EPS Growth (YoY)Latest quarter vs prior year | +19.0% | +0.7% |
Valuation Metrics
At 40.4x trailing earnings, DSGX trades at a 31% valuation discount to TYL's 58.6x P/E. Adjusting for growth (PEG ratio), DSGX offers better value at 1.37x vs TYL's 5.51x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | DSGXThe Descartes Sys… | TYLTyler Technologie… |
|---|---|---|
| Market CapShares × price | $5.7B | $15.3B |
| Enterprise ValueMkt cap + debt − cash | $5.5B | $15.2B |
| Trailing P/EPrice ÷ TTM EPS | 40.40x | 58.63x |
| Forward P/EPrice ÷ next-FY EPS est. | 35.37x | 28.29x |
| PEG RatioP/E ÷ EPS growth rate | 1.37x | 5.51x |
| EV / EBITDAEnterprise value multiple | 21.35x | 33.54x |
| Price / SalesMarket cap ÷ Revenue | 8.75x | 7.14x |
| Price / BookPrice ÷ Book value/share | 4.18x | 4.55x |
| Price / FCFMarket cap ÷ FCF | 26.80x | 25.26x |
Profitability & Efficiency
DSGX delivers a 10.0% return on equity — every $100 of shareholder capital generates $10 in annual profit, vs $6 for TYL. DSGX carries lower financial leverage with a 0.01x debt-to-equity ratio, signaling a more conservative balance sheet compared to TYL's 0.19x. On the Piotroski fundamental quality scale (0–9), TYL scores 7/9 vs DSGX's 5/9, reflecting strong financial health.
| Metric | DSGXThe Descartes Sys… | TYLTyler Technologie… |
|---|---|---|
| ROE (TTM)Return on equity | +10.0% | +5.6% |
| ROA (TTM)Return on assets | +8.5% | +5.6% |
| ROICReturn on invested capital | +13.1% | +6.7% |
| ROCEReturn on capital employed | +13.4% | +7.7% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 7 |
| Debt / EquityFinancial leverage | 0.01x | 0.19x |
| Net DebtTotal debt minus cash | -$228M | -$106M |
| Cash & Equiv.Liquid assets | $236M | $745M |
| Total DebtShort + long-term debt | $8M | $638M |
| Interest CoverageEBIT ÷ Interest expense | 208.90x | 124.09x |
Total Returns (with DRIP)
A $10,000 investment in DSGX five years ago would be worth $10,886 today (with dividends reinvested), compared to $7,435 for TYL. Over the past 12 months, DSGX leads with a -40.6% total return vs TYL's -41.7%. The 3-year compound annual growth rate (CAGR) favors TYL at 3.4% vs DSGX's -3.5% — a key indicator of consistent wealth creation.
| Metric | DSGXThe Descartes Sys… | TYLTyler Technologie… |
|---|---|---|
| YTD ReturnYear-to-date | -22.2% | -18.6% |
| 1-Year ReturnPast 12 months | -40.6% | -41.7% |
| 3-Year ReturnCumulative with dividends | -10.1% | +10.4% |
| 5-Year ReturnCumulative with dividends | +8.9% | -25.6% |
| 10-Year ReturnCumulative with dividends | +287.9% | +194.8% |
| CAGR (3Y)Annualised 3-year return | -3.5% | +3.4% |
Risk & Volatility
TYL is the less volatile stock with a 0.68 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.
| Metric | DSGXThe Descartes Sys… | TYLTyler Technologie… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.91x | 0.68x |
| 52-Week HighHighest price in past year | $117.35 | $626.56 |
| 52-Week LowLowest price in past year | $62.56 | $283.72 |
| % of 52W HighCurrent price vs 52-week peak | +56.5% | +56.6% |
| RSI (14)Momentum oscillator 0–100 | 42.9 | 48.7 |
| Avg Volume (50D)Average daily shares traded | 549K | 513K |
Analyst Outlook
Wall Street rates DSGX as "Buy" and TYL as "Buy". Consensus price targets imply 67.4% upside for DSGX (target: $111) vs 33.6% for TYL (target: $474).
| Metric | DSGXThe Descartes Sys… | TYLTyler Technologie… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $110.89 | $473.91 |
| # AnalystsCovering analysts | 13 | 35 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | 1 |
| 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 | Feb 20 | Feb 26 | Change |
|---|---|---|---|
| The Descartes Syste… (DSGX) | 100 | 176.09 | +76.1% |
| Tyler Technologies,… (TYL) | 100 | 115.81 | +15.8% |
The Descartes Syste… (DSGX) returned +9% over 5 years vs Tyler Technologies,… (TYL)'s -26%. A $10,000 investment in DSGX 5 years ago would be worth $10,886 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| The Descartes Syste… (DSGX) | $185M | $651M | +251.9% |
| Tyler Technologies,… (TYL) | $591M | $2.1B | +261.7% |
The Descartes Systems Group Inc.'s revenue grew from $185M (2015) to $651M (2024) — a 15.0% CAGR. Tyler Technologies, Inc.'s revenue grew from $591M (2015) to $2.1B (2024) — a 15.4% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| The Descartes Syste… (DSGX) | 11.1% | 22.0% | +98.0% |
| Tyler Technologies,… (TYL) | 11.0% | 12.3% | +12.1% |
The Descartes Systems Group Inc.'s net margin went from 11% (2015) to 22% (2024). Tyler Technologies, Inc.'s net margin went from 11% (2015) to 12% (2024).
Chart 4P/E Ratio History — 8 Years
| Stock | 2017 | 2024 | Change |
|---|---|---|---|
| The Descartes Syste… (DSGX) | 81.1 | 69.3 | -14.5% |
| Tyler Technologies,… (TYL) | 41 | 95.3 | +132.4% |
The Descartes Systems Group Inc. has traded in a 59x–96x P/E range over 8 years; current trailing P/E is ~40x. Tyler Technologies, Inc. has traded in a 41x–141x P/E range over 8 years; current trailing P/E is ~59x.
Chart 5EPS Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| The Descartes Syste… (DSGX) | 0.27 | 1.64 | +507.4% |
| Tyler Technologies,… (TYL) | 1.77 | 6.05 | +241.8% |
The Descartes Systems Group Inc.'s EPS grew from $0.27 (2015) to $1.64 (2024) — a 22% CAGR. Tyler Technologies, Inc.'s EPS grew from $1.77 (2015) to $6.05 (2024) — a 15% CAGR.
Chart 6Free Cash Flow — 5 Years
The Descartes Systems Group Inc. generated $213M FCF in 2024 (+24% vs 2021). Tyler Technologies, Inc. generated $604M FCF in 2024 (+91% vs 2021).
DSGX vs TYL: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is DSGX or TYL 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 TYL?
On trailing P/E, The Descartes Systems Group Inc. (DSGX) is the cheapest at 40.4x versus Tyler Technologies, Inc. at 58.6x. On forward P/E, Tyler Technologies, Inc. is actually cheaper at 28.3x — notably different from the trailing picture, reflecting expected earnings growth. 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 Tyler Technologies, Inc.'s 2.66x — a reasonable growth-adjusted valuation.
03Which is the better long-term investment — DSGX or TYL?
Over the past 5 years, The Descartes Systems Group Inc. (DSGX) delivered a total return of +8.9%, compared to -25.6% for Tyler Technologies, Inc. (TYL). 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 TYL's +194.8%. 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 TYL?
By beta (market sensitivity over 5 years), Tyler Technologies, Inc. (TYL) is the lower-risk stock at 0.68β versus The Descartes Systems Group Inc.'s 0.91β — meaning DSGX is approximately 33% more volatile than TYL 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 19% for Tyler Technologies, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — DSGX or TYL?
The Descartes Systems Group Inc. (DSGX) is the more profitable company, earning 22.0% net margin versus 12.3% for Tyler Technologies, 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 14.0% for TYL. 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 TYL 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 Tyler Technologies, Inc.'s 2.66x. A PEG below 1.5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Tyler Technologies, Inc. (TYL) trades at 28.3x forward P/E versus 35.4x for The Descartes Systems Group Inc. — 7.1x 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 TYL?
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 TYL better for a retirement portfolio?
For long-horizon retirement investors, Tyler Technologies, Inc. (TYL) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.68), +194.8% 10Y return). Both have compounded well over 10 years (TYL: +194.8%, 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 TYL?
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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