Financial Review: SmartRent (NYSE:SMRT) and NetSol Technologies (NASDAQ:NTWK)

SmartRent (NYSE:SMRT) and NetSol Technologies (NASDAQ:NTWK) are both small-cap technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.

Valuation & Earnings

This table compares SmartRent and NetSol Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SmartRent	$152.33 million	1.96	-$60.56 million	($0.09)	-17.51
NetSol Technologies	$74.40 million	1.04	$2.95 million	$0.25	25.96

NetSol Technologies has lower revenue, but higher earnings 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 SmartRent and NetSol Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SmartRent	-11.02%	-7.59%	-5.73%
NetSol Technologies	4.02%	6.79%	4.35%

Analyst Ratings

This is a breakdown of current ratings for SmartRent and NetSol Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SmartRent	1	2	1	0	2.00
NetSol Technologies	0	1	2	0	2.67

SmartRent currently has a consensus price target of $1.48, suggesting a potential downside of 6.41%. NetSol Technologies has a consensus price target of $9.00, suggesting a potential upside of 38.67%. Given NetSol Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe NetSol Technologies is more favorable than SmartRent.

Volatility and Risk

SmartRent has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500. Comparatively, NetSol Technologies has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500.

Institutional and Insider Ownership

59.4% of SmartRent shares are held by institutional investors. Comparatively, 16.0% of NetSol Technologies shares are held by institutional investors. 2.3% of SmartRent shares are held by company insiders. Comparatively, 13.5% of NetSol Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

NetSol Technologies beats SmartRent on 10 of the 14 factors compared between the two stocks.

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.

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.