Comparing Cloopen Group (NYSE:RAAS) & The Descartes Systems Group (NASDAQ:DSGX)

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

Insider and Institutional Ownership

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cloopen Group	$1.01 billion	0.05	-$141.35 million	N/A	N/A
The Descartes Systems Group	$651.00 million	13.18	$115.91 million	$1.65	60.73

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

Profitability

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

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

Volatility and Risk

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

Analyst Ratings

This is a summary of current ratings and price targets for Cloopen Group and The Descartes Systems Group, as provided by MarketBeat.

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

The Descartes Systems Group has a consensus price target of $120.33, indicating a potential upside of 20.08%. Given The Descartes Systems Group’s stronger consensus rating and higher probable upside, analysts clearly believe The Descartes Systems Group is more favorable than Cloopen Group.

Summary

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

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.

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.