Liquidity Services (NASDAQ: LQDT) and NetSol Technologies (NASDAQ:NTWK) are both small-cap business services companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Insider and Institutional Ownership

67.6% of Liquidity Services shares are owned by institutional investors. Comparatively, 21.3% of NetSol Technologies shares are owned by institutional investors. 22.3% of Liquidity Services shares are owned by company insiders. Comparatively, 11.1% of NetSol Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Liquidity Services and NetSol Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Liquidity Services -27.52% -16.59% -10.35%
NetSol Technologies 0.05% 0.05% 0.04%

Volatility & Risk

Liquidity Services has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, NetSol Technologies has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500.

Valuation & Earnings

This table compares Liquidity Services and NetSol Technologies’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Liquidity Services $287.16 million 0.62 -$24.12 million ($2.55) -2.22
NetSol Technologies $69.96 million 0.67 $12.02 million ($0.01) -419.58

NetSol Technologies has higher revenue, but lower earnings than Liquidity Services. NetSol Technologies is trading at a lower price-to-earnings ratio than Liquidity Services, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Liquidity Services and NetSol Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Liquidity Services 0 1 0 0 2.00
NetSol Technologies 0 0 0 0 N/A

Summary

NetSol Technologies beats Liquidity Services on 6 of the 10 factors compared between the two stocks.

Liquidity Services Company Profile

Liquidity Services, Inc. operates a network of e-commerce marketplaces that enable buyers and sellers to transact in an automated environment. The Company employs e-commerce marketplace solutions to manage, value and sell inventory and equipment for business and government clients. The Company’s marketplaces provide professional buyers access to a global supply of new, surplus and scrap assets presented with digital images and other relevant product information. Additionally, the Company enables its corporate and government sellers to enhance their financial return on assets offered for sale by providing a liquid marketplace and value-added services. The Company’s range of services include program management, valuation, asset management, reconciliation, Return to Vendor and Returns Management Authorization (RTV and RMA), refurbishment and recycling, fulfillment, marketing and sales, warehousing and transportation, buyer customer support, and compliance and risk mitigation.

NetSol Technologies Company Profile

NetSol Technologies, Inc. is a provider of information technology (IT) and enterprise software solutions. The Company is engaged in the licensing, customization, enhancement and maintenance of its suite of financial applications under the brand names, NetSol Financial Suite (NFS) and NFS Ascent, for businesses in the lease and finance industry. The Company’s segments include North America, Europe and Asia-Pacific. The Company’s offerings include its global solution, NFS. The four applications under NFS have been designed and developed for a setting, and deals with multinational, multi-company, multi-asset, multi-lingual, multi-distributor and multi-manufacturer environments. Each application is used independently to address specific sub-domains of the leasing/financing cycle. The Company’s platform, NFS Ascent, offers a solution for the auto and equipment finance and leasing industry. NFS Ascent platform is a lease accounting and contract processing engine.

Receive News & Ratings for Liquidity Services Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Liquidity Services Inc. and related companies with MarketBeat.com's FREE daily email newsletter.