Head-To-Head Survey: Cloopen Group (NYSE:RAAS) versus The Descartes Systems Group (NASDAQ:DSGX)

The Descartes Systems Group (NASDAQ:DSGX) and Cloopen Group (NYSE:RAAS) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

77.7% of The Descartes Systems Group shares are held by institutional investors. 0.3% of The Descartes Systems Group shares are held by insiders. Comparatively, 9.8% of Cloopen Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares The Descartes Systems Group and Cloopen Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The Descartes Systems Group	21.80%	10.65%	8.88%
Cloopen Group	N/A	N/A	N/A

Earnings & Valuation

This table compares The Descartes Systems Group and Cloopen Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
The Descartes Systems Group	$651.00 million	13.07	$115.91 million	$1.65	60.24
Cloopen Group	$1.01 billion	0.05	-$141.35 million	N/A	N/A

The Descartes Systems Group has higher earnings, but lower revenue than Cloopen Group.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for The Descartes Systems Group and Cloopen Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The Descartes Systems Group	0	4	9	1	2.79
Cloopen Group	0	0	0	0	0.00

The Descartes Systems Group presently has a consensus target price of $120.33, suggesting a potential upside of 21.07%. Given The Descartes Systems Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe The Descartes Systems Group is more favorable than Cloopen Group.

Volatility & Risk

The Descartes Systems Group has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, Cloopen Group has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500.

Summary

The Descartes Systems Group beats Cloopen Group on 11 of the 13 factors compared between the two stocks.

About The Descartes Systems Group

The Descartes Systems Group Inc. provides cloud-based logistics and supply chain management solutions worldwide. Its Logistics Technology platform offers a range of modular, interoperable web and wireless logistics management solutions. The company provides a suite of solutions that include routing, mobile, and telematics; transportation management; ecommerce, shipping, and fulfillment; customs and regulatory compliance; global trade intelligence; broker and forwarder enterprise systems; and B2B messaging and connectivity services. It also offers its customers to use its modular, software-as-a-service, and data solutions to route, schedule, track, and measure delivery resources; plan, allocate, and execute shipments; rate, audit, and pay transportation invoices; access and analyze global trade data; research and perform trade tariff and duty calculations; file customs and security documents for imports and exports; and various other logistics processes. In addition, the company provides consulting, implementation, and training services, as well as maintenance and support services. It serves transportation providers, such as air, ocean, and truck modes; logistics service providers, including third-party logistics providers, freight forwarders, and customs brokers; and distribution-intensive companies, such as manufacturers, retailers, distributors, and mobile business service providers through subscription, transactional or perpetual license basis. The Descartes Systems Group Inc. was incorporated in 1981 and is headquartered in Waterloo, Canada.

About Cloopen Group

Cloopen Group Holding Limited, through its subsidiaries, provides cloud communication services in the People's Republic of China. It offers River Soldier CRM, an intelligent marketing system and digital operation management platform; AI vision technology; Ladder AI Kernal, a natural language processing technology; Smart IVR, an intelligent navigation robot; Rongxi assistive robot technology; and Rongxi sparring robot that helps enterprises solve problems. The company also provides sky counter that offers remote audio and video services for enterprise customers; instant messaging and enterprise work center services; SMS verification, international SMS, and SMS sending platform services; and international voice, voice notification, two-way calling, and voice verification code services. It serves a customer base consisting of enterprises of various industries, including enterprise general, insurance, government, car, manufacture, and port. The company was founded in 2012 and is headquartered in Beijing, China.