Reviewing NetSol Technologies (NTWK) and Its Rivals

NetSol Technologies (NASDAQ:NTWK) is one of 954 public companies in the “Software” industry, but how does it weigh in compared to its competitors? We will compare NetSol Technologies to similar companies based on the strength of its dividends, profitability, institutional ownership, analyst recommendations, risk, earnings and valuation.

Risk & Volatility

NetSol Technologies has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500. Comparatively, NetSol Technologies’ competitors have a beta of 1.34, meaning that their average stock price is 34% more volatile than the S&P 500.

Valuation & Earnings

This table compares NetSol Technologies and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NetSol Technologies	$74.40 million	$2.95 million	28.00
NetSol Technologies Competitors	$1.80 billion	$385.28 million	108.99

NetSol Technologies’ competitors have higher revenue and earnings than NetSol Technologies. NetSol Technologies is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

16.0% of NetSol Technologies shares are held by institutional investors. Comparatively, 41.9% of shares of all “Software” companies are held by institutional investors. 13.5% of NetSol Technologies shares are held by company insiders. Comparatively, 19.9% of shares of all “Software” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares NetSol Technologies and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NetSol Technologies	4.02%	6.79%	4.35%
NetSol Technologies Competitors	-607.19%	26.73%	-8.88%

Analyst Recommendations

This is a summary of recent recommendations and price targets for NetSol Technologies and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NetSol Technologies	0	1	2	0	2.67
NetSol Technologies Competitors	5780	21576	44960	1498	2.57

NetSol Technologies currently has a consensus price target of $9.00, suggesting a potential upside of 28.57%. As a group, “Software” companies have a potential upside of 29.41%. Given NetSol Technologies’ competitors higher probable upside, analysts plainly believe NetSol Technologies has less favorable growth aspects than its competitors.

Summary

NetSol Technologies competitors beat NetSol Technologies on 9 of the 13 factors compared.

NetSol Technologies Company Profile

NetSol Technologies, Inc. is a global provider of enterprise software and information technology services, with a primary focus on the asset finance and leasing industry. The company serves vehicle manufacturers, banks, financial institutions, equipment lessors and other organizations that manage commercial lending, leasing and financing operations. Its software offerings are designed to support the full lifecycle of financing transactions, including origination, credit and contract management, billing, accounting, asset management, collections and portfolio administration.