Karooooo (NASDAQ:KARO) vs. Dassault Systèmes (OTCMKTS:DASTY) Head to Head Comparison

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Karooooo	$225.29 million	6.41	$39.57 million	$1.56	29.97
Dassault Systèmes	$6.72 billion	8.20	$1.30 billion	$0.98	42.06

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.

Volatility & Risk

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

Profitability

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

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

Analyst Recommendations

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

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

Karooooo currently has a consensus target price of $44.00, indicating a potential downside of 5.90%. Given Karooooo’s stronger consensus rating and higher possible upside, equities analysts clearly believe Karooooo is more favorable than Dassault Systèmes.

Insider and Institutional Ownership

0.0% of Dassault Systèmes shares are owned by institutional investors. 74.7% of Karooooo shares are owned by 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.

Dividends

Karooooo pays an annual dividend of $1.08 per share and has a dividend yield of 2.3%. Dassault Systèmes pays an annual dividend of $0.19 per share and has a dividend yield of 0.5%. Karooooo pays out 69.2% of its earnings in the form of a dividend. Dassault Systèmes pays out 19.4% 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.

Summary

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

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.

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.