Contrasting Dassault Systèmes (OTCMKTS:DASTY) & Karooooo (NASDAQ:KARO)

Dassault Systèmes (OTCMKTS:DASTY) and Karooooo (NASDAQ:KARO) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, valuation and institutional ownership.

Profitability

This table compares Dassault Systèmes and Karooooo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dassault Systèmes	19.29%	18.50%	10.25%
Karooooo	19.87%	30.29%	19.88%

Institutional and Insider Ownership

0.0% of Dassault Systèmes shares are held by institutional investors. 74.7% of Karooooo shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Dassault Systèmes pays an annual dividend of $0.18 per share and has a dividend yield of 0.4%. Karooooo pays an annual dividend of $1.08 per share and has a dividend yield of 2.2%. Dassault Systèmes pays out 18.4% of its earnings in the form of a dividend. Karooooo pays out 69.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Valuation & Earnings

This table compares Dassault Systèmes and Karooooo”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dassault Systèmes	$6.72 billion	8.29	$1.30 billion	$0.98	42.51
Karooooo	$225.29 million	6.68	$39.57 million	$1.56	31.22

Dassault Systèmes has higher revenue and earnings than Karooooo. Karooooo is trading at a lower price-to-earnings ratio than Dassault Systèmes, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Dassault Systèmes has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, Karooooo has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for Dassault Systèmes and Karooooo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dassault Systèmes	0	0	0	0	0.00
Karooooo	0	0	2	0	3.00

Karooooo has a consensus price target of $44.00, suggesting a potential downside of 9.65%. Given Karooooo’s stronger consensus rating and higher possible upside, analysts clearly believe Karooooo is more favorable than Dassault Systèmes.

Summary

Karooooo beats Dassault Systèmes on 10 of the 16 factors compared between the two stocks.

About Dassault Systèmes

Dassault Systèmes SE provides software solutions and services worldwide. It offers SOLIDWORKS provides easy-to-use 2D and 3D product development solutions accessible to any business; CATIA, an engineering and design software for product 3D computer-aided design; GEOVIA for intersection of natural resources, infrastructure, and urban planning; and BIOVIA that develops chemicals, biologics, and materials experiences. The company provides SIMULIA that delivers realistic simulation applications; DELMIA, which enables global industrial operations; 3DVIA that provides 3D space planning solutions; and ENOVIA that enables to plan and track the definition of success for customer. In addition, it offers Centric PLM, a product lifecycle management software solution; 3DEXCITE, a real-time 3D visualization software; NETVIBES, which enables organizations to gather, align, and enrich big data; 3DEXPERIENCE platform that provides organizations a holistic and real-time view of their business activities and ecosystem, as well as connecting people, ideas, data, and solutions together in a single environment; and MEDIDATA, a clinical research study software that provides evidences and insights to pharmaceutical, biotech, medical device, and diagnostic companies, as well as academic researchers. The company distributes its products through direct and indirect sales channels. It primarily serves companies in the transportation and mobility; industrial equipment; aerospace and defense; high-tech; life sciences and healthcare; infrastructure, energy, and materials; home and lifestyle; architecture, engineering, and construction; cities, and public services; consumer packaged goods and retail; marine and offshore; and business services. Dassault Systèmes SE was incorporated in 1981 and is headquartered in Vélizy-Villacoublay, France.

About Karooooo

Karooooo Ltd. provides mobility software-as-a-service (SaaS) platform for connected vehicles in South Africa, rest of Africa, Europe, the Asia-Pacific, the Middle East, and the United States. The company offers Fleet Telematics, a fleet management SaaS platform that provides real-time insights; LiveVision, which offers pro-active risk management and fleet visibility; MiFleet advanced fleet administration and business intelligence that provides cost management and administration capability services; and Karooooo Logistics, a software application for management of last mile delivery and general operational logistics. It provides Cartrack Field Service, a software application for management of field and on site workers; Business Intelligence for high-level view of fleet statistics; asset tracking for tracking and tracing moveable assets; asset recovery services that assists vehicle owners and insurance companies with the recovery of vehicles and other assets; and insurance telematics that allows insurers to tailor premiums for commercial and consumer customers using analytics; Protector, a safety package for consumer vehicles; and Car Watch, a mobile application that lets users track and watch their vehicles. In addition, the company offers specialist mobility solutions that include Bike Track, a GPS-based solution for commercial motorbike fleets; Credit Management that predicts payment cycles and facilitate active credit management for asset-based vehicle finance; electronic monitoring services application that allows law enforcement agencies to monitor persons of interest; and mobility and monitoring solutions, such as Carzuka, cartrack insurance agency, and on-demand rideshare taxi application, as well as smart IoT products. It provides its solutions through direct sales force to consumers and sole proprietors, small and medium-sized businesses, large enterprises, and other connected devices. Karooooo Ltd. was founded in 2001 and is headquartered in Singapore.