Contrasting of Ebix Inc. (EBIX) and The Descartes Systems Group Inc (NASDAQ:DSGX)

This is therefore a contrasting of the institutional ownership, earnings and valuation, profitability, risk, dividends, analyst recommendations in Ebix Inc. (NASDAQ:EBIX) and The Descartes Systems Group Inc (NASDAQ:DSGX). The two are both Business Software & Services companies that compete with one another.

Earnings and Valuation

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ebix Inc. 466.18M 3.76 111.20M 3.44 13.95
The Descartes Systems Group Inc 267.77M 9.25 30.05M 0.38 74.00

Table 1 shows gross revenue, earnings per share (EPS) and valuation of the two companies. The Descartes Systems Group Inc appears to has lower revenue and earnings than Ebix Inc. The business with the lower P/E out of the two companies is considered for more affordable of the two firms presently. Ebix Inc.’s shares have been trading at lower P/E ratio which means it is presently more affordable than The Descartes Systems Group Inc.

Profitability

Table 2 represents Ebix Inc. (NASDAQ:EBIX) and The Descartes Systems Group Inc (NASDAQ:DSGX)’s net margins, return on assets and return on equity.

Net Margins Return on Equity Return on Assets
Ebix Inc. 23.85% 22.4% 8.8%
The Descartes Systems Group Inc 11.22% 5.9% 4.6%

Risk & Volatility

A beta of 1.5 shows that Ebix Inc. is 50.00% more volatile than S&P 500. The Descartes Systems Group Inc has a 0.49 beta and it is 51.00% less volatile than S&P 500.

Liquidity

Ebix Inc.’s Current Ratio and Quick Ratio are 1.6 and 1.6 respectively. The Current Ratio and Quick Ratio of its competitor The Descartes Systems Group Inc are 1.1 and 1.1 respectively. Ebix Inc. therefore has a better chance of paying off short and long-term obligations compared to The Descartes Systems Group Inc.

Dividends

The annual dividend that Ebix Inc. pay is $0.3 per share with a dividend yield of 0.54%. The Descartes Systems Group Inc does not pay a dividend.

Analyst Recommendations

The following table given below contains the ratings and recommendations for Ebix Inc. and The Descartes Systems Group Inc.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Ebix Inc. 0 1 1 2.50
The Descartes Systems Group Inc 0 0 0 0.00

Ebix Inc.’s upside potential currently stands at 76.69% and an $99 average price target.

Insider & Institutional Ownership

Institutional investors held 85.5% of Ebix Inc. shares and 69.2% of The Descartes Systems Group Inc shares. Ebix Inc.’s share held by insiders are 22.5%. Insiders Comparatively, held 0.1% of The Descartes Systems Group Inc shares.

Performance

In this table we provide the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Ebix Inc. 1.48% -13.02% -39.69% -38.21% -38.37% -39.53%
The Descartes Systems Group Inc -4.42% -10.13% -16.31% -7.65% 4.73% -0.99%

For the past year The Descartes Systems Group Inc has weaker performance than Ebix Inc.

Summary

Ebix Inc. beats The Descartes Systems Group Inc on 12 of the 15 factors.

Ebix, Inc. provides software and e-commerce solutions to insurance, finance, and healthcare industries. It offers software development, customization, and consulting services to various entities in the insurance industry, including carriers, brokers, exchanges, and standard making bodies. The company operates data exchanges in the areas of life insurance, annuities, employee health benefits, risk management, workers compensation, insurance underwriting, and property and casualty (P&C) insurance. It also focuses on designing and deploying back-end systems, such as eGlobal, which targets multinational P&C insurance brokers; WinBeat that targets P&C brokers in the Australian and New Zealand markets; and EbixASP, a system for the P&C insurance brokers in the United States. In addition, the company offers business process outsourcing services that include providing domain intensive project management, time, and material based consulting engagements to clients; the creation and tracking of certificates of insurance issued in the United States and Australian markets; and the provision of claims adjudication and settlement, call center, and back office support, as well as a software-based service for the issuance of certificates of insurance and a service to track certificates of insurance for corporate clients in the United States and Australia. Further, the company offers carrier systems, which pertains to the designing and deploying on-demand back-end systems for P&C insurance companies. The company was formerly known as Delphi Systems, Inc. and changed its name to Ebix, Inc. in December 2003. Ebix, Inc. was founded in 1976 and is headquartered in Johns Creek, Georgia.

The Descartes Systems Group Inc. provides federated network and logistics technology solutions worldwide. The companyÂ’s network-based solutions offer regulatory compliance and customs filing; route and resource planning, execution, and monitoring; access and leverage global trade and restricted party data; inventory and asset visibility; rate and transportation management; and warehouse operation services, as well as connects people to their trading partners and enable business document exchange. Its Logistics Application Suite offers a range of modular, cloud-based, and interoperable Web and wireless logistics management applications. The companyÂ’s Logistics Application Suite offers solutions, such as route planning and execution, mobile applications, and telematics and compliance; transportation management solutions comprising carrier compliance and rate management, transportation planning and execution, dock scheduling and yard management, freight audit and settlement, pool distribution, and logistics flow control, as well as visibility, tracking, and performance management; and global logistics network services, such as document management, community, and connectivity services. Its Logistics Application Suite solutions also include customs and regulatory compliance solutions, such as cargo security compliance, declaration and fiscal compliance, customs warehouse management, ocean regulatory services, industry program support services, global trade content, and government solutions; and broker and forwarder enterprise system solutions, such as forwarder back office, and brokerage and declaration services. In addition, it offers consulting, implementation, and training services; and maintenance and support services. The company serves transportation providers, logistics service providers, and distribution-intensive companies through distributors, alliance partners, and value added resellers. The company was founded in 1981 and is headquartered in Waterloo, Canada.

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