Analyzing Alight (NYSE:ALIT) & NetClass Technology (NASDAQ:NTCL)

Alight (NYSE:ALIT) and NetClass Technology (NASDAQ:NTCL) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, dividends, analyst recommendations and profitability.

Insider & Institutional Ownership

96.7% of Alight shares are owned by institutional investors. 2.1% of Alight shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Alight and NetClass Technology”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alight	$2.26 billion	0.18	-$3.10 billion	($5.87)	-0.13
NetClass Technology	$9.81 million	12.83	-$10.82 million	N/A	N/A

NetClass Technology has lower revenue, but higher earnings than Alight.

Analyst Ratings

This is a summary of recent recommendations for Alight and NetClass Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alight	2	3	3	0	2.13
NetClass Technology	1	0	0	0	1.00

Alight currently has a consensus target price of $3.56, suggesting a potential upside of 375.55%. Given Alight’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Alight is more favorable than NetClass Technology.

Profitability

This table compares Alight and NetClass Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alight	-137.50%	13.04%	4.42%
NetClass Technology	N/A	N/A	N/A

Volatility and Risk

Alight has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500. Comparatively, NetClass Technology has a beta of -1.97, indicating that its share price is 297% less volatile than the S&P 500.

Summary

Alight beats NetClass Technology on 9 of the 12 factors compared between the two stocks.

About Alight

Alight, Inc. provides cloud-based integrated digital human capital and business solutions worldwide. The company operates through two segments, Employer Solutions and Professional Services. The Employer Solutions segment offers employee wellbeing, integrated benefits administration, healthcare navigation, financial wellbeing, leave of absence management, retiree healthcare and payroll; and operates AI-led capabilities software. The Professional Services segment offers consulting offerings, such as cloud advisory, deployment, and optimization services for cloud platforms. The company provides Alight Worklife, an intuitive, cloud-based employee engagement platform. Its solutions enable employees to enrich their health, wealth, and wellbeing that helps organizations achieve a high-performance culture. Alight, Inc. was founded in 2020 and is based in Lincolnshire, Illinois.

About NetClass Technology

Netclass Technology, Inc. operates as a holding company, which provides IT solutions to schools, training institutions, corporations, public agencies and other institutions. Its solutions include teaching management, campus management, online teaching, online examination, epidemic prevention and control, education credit block chain system, and lecturer evaluation services. The company was founded January 4, 2022 and is headquartered in Shanghai, China.