NetSol Technologies (NTWK) versus CDW (CDW) Financial Analysis

NetSol Technologies (NASDAQ: NTWK) and CDW (NASDAQ:CDW) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, valuation, profitability, analyst recommendations, risk, dividends and earnings.

Analyst Ratings

This is a summary of current ratings for NetSol Technologies and CDW, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NetSol Technologies 0 0 0 0 N/A
CDW 1 3 5 1 2.60

CDW has a consensus price target of $66.72, indicating a potential downside of 3.33%. Given CDW’s higher possible upside, analysts plainly believe CDW is more favorable than NetSol Technologies.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NetSol Technologies $65.37 million 0.75 -$4.97 million ($0.34) -12.79
CDW $13.98 billion 0.76 $424.40 million $2.70 25.56

CDW has higher revenue and earnings than NetSol Technologies. NetSol Technologies is trading at a lower price-to-earnings ratio than CDW, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares NetSol Technologies and CDW’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NetSol Technologies -6.01% -4.82% -3.88%
CDW 2.90% 62.71% 8.12%

Institutional and Insider Ownership

19.2% of NetSol Technologies shares are held by institutional investors. Comparatively, 90.8% of CDW shares are held by institutional investors. 11.1% of NetSol Technologies shares are held by company insiders. Comparatively, 2.6% of CDW shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

CDW pays an annual dividend of $0.84 per share and has a dividend yield of 1.2%. NetSol Technologies does not pay a dividend. CDW pays out 31.1% of its earnings in the form of a dividend.

Risk & Volatility

NetSol Technologies has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, CDW has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500.

Summary

CDW beats NetSol Technologies on 13 of the 15 factors compared between the two stocks.

About NetSol Technologies

NetSol Technologies, Inc. is a provider of information technology (IT) and enterprise software solutions. The Company is engaged in the licensing, customization, enhancement and maintenance of its suite of financial applications under the brand names, NetSol Financial Suite (NFS) and NFS Ascent, for businesses in the lease and finance industry. The Company’s segments include North America, Europe and Asia-Pacific. The Company’s offerings include its global solution, NFS. The four applications under NFS have been designed and developed for a setting, and deals with multinational, multi-company, multi-asset, multi-lingual, multi-distributor and multi-manufacturer environments. Each application is used independently to address specific sub-domains of the leasing/financing cycle. The Company’s platform, NFS Ascent, offers a solution for the auto and equipment finance and leasing industry. NFS Ascent platform is a lease accounting and contract processing engine.

About CDW

CDW Corporation (CDW) is a provider of integrated information technology (IT) solutions in the United States, Canada and the United Kingdom. The Company’s segments include Corporate, Public and Other. The Corporate segment consists of private sector business customers in the United States based on employee size between Medium/Large customers, which primarily includes organizations with more than 100 employees, and Small Business customers, which primarily includes organizations with up to 100 employees. Its Public segment comprises government agencies and education and healthcare institutions in the United States. Its Other segment includes Canada and CDW UK. The CDW Advanced Services business consists primarily of customized engineering services delivered by technology specialists and engineers, and managed services that include Infrastructure as a Service (IaaS) offerings. The Company has centralized logistics and headquarters functions that provide services to the segments.

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