Analyzing USData (OTCMKTS:USDC) & NetSol Technologies (NASDAQ:NTWK)

USData (OTCMKTS:USDC) and NetSol Technologies (NASDAQ:NTWK) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, profitability, valuation and analyst recommendations.

Earnings & Valuation

This table compares USData and NetSol Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
USData	N/A	N/A	N/A	N/A	N/A
NetSol Technologies	$66.09 million	0.79	$2.92 million	$0.25	17.68

NetSol Technologies has higher revenue and earnings than USData.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
USData	N/A	N/A	N/A
NetSol Technologies	4.46%	7.40%	4.86%

Analyst Ratings

This is a summary of recent ratings and recommmendations for USData and NetSol Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
USData	0	0	0	0	0.00
NetSol Technologies	0	1	0	0	2.00

Given USData’s higher probable upside, research analysts clearly believe USData is more favorable than NetSol Technologies.

Institutional & Insider Ownership

16.0% of NetSol Technologies shares are owned by institutional investors. 0.6% of USData shares are owned by insiders. Comparatively, 13.2% of NetSol Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

NetSol Technologies beats USData on 7 of the 8 factors compared between the two stocks.

About USData

USDATA Corp. operates as an independent, global supplier of industrial automation software tools, applications, and consulting services designed to provide businesses with the knowledge and control needed to perfect the products they produce and the processes they manage. USDATA Corp. develops, markets, and supports component-based software products for customers requiring enterprise-wide, open solutions for the industrial automation markets. These software products provide customers real-time computer applications that enable interactive, dynamic, and graphical interfaces to industrial operations. These applications collect, consolidate, and communicate information about an automated process, typically drawn from complex operating sources or from multiple sites throughout an enterprise; and enable the user to interact with and control critical processes. The real-time information provided by its products is intended to enable customers to reduce operating costs, improve product quality, and increase overall throughput and productivity. USDATA’s FactoryLink is a process knowledge and control solution where as its Xfactory is a product knowledge and control software product. It serves customers in a variety of industries, including chemical, oil and gas, food, beverage, automotive, aerospace, telecommunications, electronics, transportation, and other industries. These customers are located in the United States, Europe, Canada, Latin America, and Asia Pacific. The company sells its products and services to end customers and systems integrators through distributors, original equipment manufacturer relationships, and direct sales. USDATA Corp. was founded in 1974 and is based in Richardson, Texas.

About NetSol Technologies

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.