NetSol Technologies (NASDAQ:NTWK – Get Free Report) and SmartRent (NYSE:SMRT – Get Free Report) are both small-cap technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.
Volatility and Risk
NetSol Technologies has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, SmartRent has a beta of 1.64, suggesting that its share price is 64% more volatile than the S&P 500.
Insider and Institutional Ownership
16.0% of NetSol Technologies shares are held by institutional investors. Comparatively, 59.4% of SmartRent shares are held by institutional investors. 13.5% of NetSol Technologies shares are held by company insiders. Comparatively, 2.3% of SmartRent shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and price targets for NetSol Technologies and SmartRent, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NetSol Technologies | 0 | 1 | 2 | 0 | 2.67 |
| SmartRent | 1 | 2 | 1 | 0 | 2.00 |
NetSol Technologies currently has a consensus target price of $9.00, indicating a potential upside of 27.30%. SmartRent has a consensus target price of $1.48, indicating a potential upside of 6.50%. Given NetSol Technologies’ stronger consensus rating and higher possible upside, equities research analysts clearly believe NetSol Technologies is more favorable than SmartRent.
Valuation & Earnings
This table compares NetSol Technologies and SmartRent”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NetSol Technologies | $74.37 million | 1.14 | $2.95 million | $0.25 | 28.28 |
| SmartRent | $151.20 million | 1.76 | -$60.56 million | ($0.10) | -13.85 |
NetSol Technologies has higher earnings, but lower revenue than SmartRent. SmartRent is trading at a lower price-to-earnings ratio than NetSol Technologies, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares NetSol Technologies and SmartRent’s 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% |
| SmartRent | -12.97% | -8.50% | -6.27% |
Summary
NetSol Technologies beats SmartRent on 10 of the 14 factors compared between the two stocks.
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.
About SmartRent
SmartRent, Inc., an enterprise software company, provides an integrated smart home operating system to residential property owners and operators, homebuilders, institutional home buyers, developers, and residents in the United States. The company’s products and solutions include smart apartments and homes, access control for buildings, common areas, and rental units, asset protection and monitoring, parking management, self-guided tours, and community and resident Wi-Fi. It also offers professional services to customers, which include training, installation, and support services. The company was founded in 2017 and is headquartered in Scottsdale, Arizona.
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