NetSol Technologies (NASDAQ:NTWK) and HubSpot (NYSE:HUBS) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, risk, profitability and dividends.
Insider and Institutional Ownership
24.3% of NetSol Technologies shares are held by institutional investors. Comparatively, 93.6% of HubSpot shares are held by institutional investors. 11.8% of NetSol Technologies shares are held by insiders. Comparatively, 9.6% of HubSpot shares are held by 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.
Volatility and Risk
NetSol Technologies has a beta of 0.16, indicating that its share price is 84% less volatile than the S&P 500. Comparatively, HubSpot has a beta of 1.91, indicating that its share price is 91% more volatile than the S&P 500.
Profitability
This table compares NetSol Technologies and HubSpot’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NetSol Technologies | 8.74% | 7.48% | 5.66% |
| HubSpot | -13.43% | -19.13% | -5.65% |
Earnings and Valuation
This table compares NetSol Technologies and HubSpot’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NetSol Technologies | $60.93 million | 1.04 | $4.30 million | N/A | N/A |
| HubSpot | $375.61 million | 12.03 | -$39.71 million | ($1.02) | -112.94 |
NetSol Technologies has higher earnings, but lower revenue than HubSpot.
Analyst Ratings
This is a breakdown of recent ratings and target prices for NetSol Technologies and HubSpot, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NetSol Technologies | 0 | 0 | 0 | 0 | N/A |
| HubSpot | 0 | 4 | 11 | 0 | 2.73 |
HubSpot has a consensus price target of $147.29, indicating a potential upside of 27.85%. Given HubSpot’s higher probable upside, analysts plainly believe HubSpot is more favorable than NetSol Technologies.
About NetSol Technologies
NetSol Technologies, Inc. designs, develops, markets, and exports software products to the automobile financing and leasing, banking, and financial services industries worldwide. It also provides system integration, consulting, and IT products and services. The company offers NetSol Financial Suite (NFS), an end-to-end solution covering leasing and finance cycle for the asset finance industry; and NFS Ascent platform, a lease accounting and contract processing engine. Its NFS includes Point of Sale, a front office processing system for companies in the financial sector; Credit Application Processing System that handles incoming credit applications from dealers, agents, brokers, and the direct sales force; Contract Management System, which enables its users to manage and maintain a contract throughout its life cycle; Wholesale Finance System (WFS) that automates and manages the floor plan/bailment activities; Dealer Auditor Access System, a Web-based solution used in conjunction with WFS; and Fleet Management System to handle fleet management needs. The company’s NFS Ascent comprises LeasePak, which handles various aspects of the lease or loan lifecycle; and LeasePak software-as-a-service to small and mid-sized leasing and finance companies. In addition, it offers LeaseSoft, a full lifecycle lease and finance system for funder market; and LoanSoft for consumer loan market. Further, the company provides NFS Digital that enables a sales force for the finance and leasing company to access various channels, such as point of sale, field investigation, and auditing. Its NFS Digital includes mAccount, a self-service mobile solution; mPOS application, a Web and mobile enabled platform; mDealer, a mobile platform; mAuditor, which schedules visits, records audit exceptions, and tracks assets; and Mobile Field Investigator that permits applicants for detail verification. The company was founded in 1997 and is headquartered in Calabasas, California.
About HubSpot
HubSpot, Inc. provides a cloud-based marketing and sales software platform for businesses in the Americas, Europe, and the Asia Pacific. Its software platform includes integrated applications, such as social media, search engine optimization, blogging, Website content management, marketing automation, email, sales productivity, CRM, analytics, and reporting. The company also offers professional, and phone and email-based support services. It serves mid-market business-to-business, and B2B companies. The company markets its product through inbound go-to-market approach, marketing agency, and sales partners. HubSpot, Inc. was founded in 2005 and is headquartered in Cambridge, Massachusetts.
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