Financial Review: ImageWare Systems (OTCMKTS:IWSY) and NetSol Technologies (NASDAQ:NTWK)

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

Institutional and Insider Ownership

2.2% of ImageWare Systems shares are held by institutional investors. Comparatively, 16.0% of NetSol Technologies shares are held by institutional investors. 37.7% of ImageWare Systems shares are held by insiders. Comparatively, 13.5% of NetSol Technologies shares are held 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ImageWare Systems	N/A	N/A	N/A
NetSol Technologies	2.49%	4.24%	2.76%

Risk and Volatility

ImageWare Systems has a beta of 2.29, suggesting that its stock price is 129% more volatile than the S&P 500. Comparatively, NetSol Technologies has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for ImageWare Systems and NetSol Technologies, as reported by MarketBeat.

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

Given ImageWare Systems’ higher probable upside, research analysts plainly believe ImageWare Systems is more favorable than NetSol Technologies.

Valuation & Earnings

This table compares ImageWare Systems and NetSol Technologies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ImageWare Systems	N/A	N/A	N/A	N/A	N/A
NetSol Technologies	$66.09 million	0.80	$2.92 million	$0.15	29.73

NetSol Technologies has higher revenue and earnings than ImageWare Systems.

Summary

NetSol Technologies beats ImageWare Systems on 6 of the 9 factors compared between the two stocks.

About ImageWare Systems

ImageWare Systems, Inc. operates as a biometric solution provider in the United States and internationally. It offers Imageware Biometric Engine, a biometric identity and authentication database built for multi-biometric enrollment, management, and authentication. The company also provides Imageware Proof that enables an entity to prove user identity from their biometrics, government issued ID, and credit bureau data; Imageware Capture that enables the capture of biographic and biometric details, such as face, fingerprint, palm print, and iris, as well as scars, marks, and tattoos; Imageware Identify, which enables a user to identify others from their biometrics; and Imageware Investigate that enables an officer to create digital lineups. In addition, it offers Imageware Credential that enables a user to design, build, and print badges for access control systems, which includes tickets, smart badges, wristbands, personal identity verification cards, and others; Imageware Digital ID, a decentralized identity service that enables self-sovereign identity underpinned by blockchain technology tied to biometrics; and Imageware Authenticate, which enables users to leverage multimodal biometrics hosted in a central server or cloud to log in to services and applications from a device. Further, the company provides Law Enforcement 2.0 solution which enables state, local, and federal agencies to capture, archive, search, retrieve, and share digital images, fingerprints, and other biometrics, as well as criminal history records on a stand-alone, networked, wireless or browser-based platform. It serves airports and seaports, education, financial, government, healthcare, and law enforcement industries. The company was incorporated in 1987 and is headquartered in San Diego, California.

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.