Analyzing NetSol Technologies (NTWK) and Its Rivals

NetSol Technologies (NASDAQ:NTWK) is one of 953 public companies in the “Software” industry, but how does it contrast to its peers? We will compare NetSol Technologies to similar companies based on the strength of its earnings, analyst recommendations, risk, institutional ownership, dividends, profitability and valuation.

Valuation and Earnings

This table compares NetSol Technologies and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NetSol Technologies	$74.37 million	$2.95 million	26.10
NetSol Technologies Competitors	$1.93 billion	$386.03 million	107.31

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

Analyst Recommendations

This is a breakdown of current recommendations for NetSol Technologies and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NetSol Technologies	0	1	2	0	2.67
NetSol Technologies Competitors	5740	21509	44859	1493	2.57

NetSol Technologies presently has a consensus target price of $9.00, indicating a potential upside of 37.93%. As a group, “Software” companies have a potential upside of 28.89%. Given NetSol Technologies’ stronger consensus rating and higher probable upside, research analysts plainly believe NetSol Technologies is more favorable than its peers.

Volatility & Risk

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

Profitability

This table compares NetSol Technologies and its peers’ 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	-612.41%	21.13%	-8.86%

Insider & Institutional Ownership

16.0% of NetSol Technologies shares are owned by institutional investors. Comparatively, 41.8% of shares of all “Software” companies are owned by institutional investors. 13.5% of NetSol Technologies shares are owned by insiders. Comparatively, 19.9% of shares of all “Software” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

NetSol Technologies peers beat NetSol Technologies on 8 of the 13 factors compared.

NetSol Technologies Company Profile

NetSol Technologies, Inc. designs, develops, markets, and exports enterprise software solutions to the automobile financing and leasing, banking, and financial services industries worldwide. The company offers NFS Ascent, a suite of financial applications for businesses in the finance and leasing industry. Its NFS Ascent constituent applications include Omni Point of Sale, a web-based application; Contract Management System (CMS), an application for managing and maintaining credit contracts; Wholesale Finance System (WFS), a system for automating and managing the lifecycle of wholesale finance; Dealer Auditor Access System, a web-based solution that could be used in conjunction with WFS or any third-party wholesale finance system; NFS Ascent deployed on The Cloud, a cloud-version of NFS Ascent; and NFS Digital, that includes Self Point of Sale, Mobile Account, Mobile Point of Sale, Mobile Dealer, Mobile Auditor, Mobile Collector, and Mobile Field Investigator. The company also provides Otoz Digital Auto-Retail and mobility orchestration, a white-label SaaS platform; Otoz Ecosystem, an API-based architecture; and Otoz Platform, a white label platform, which includes Dealer/Admin Tool and Customer Portals. In addition, it offers system integration, consulting, and information technology products and services. It serves blue chip organizations, Dow-Jones 30 Industrials, Fortune 500 manufacturers and financial institutions, and vehicle manufacturers. The company was incorporated in 1997 and is headquartered in Encino, California.