NetSol Technologies (NASDAQ:NTWK) and Synopsys (NASDAQ:SNPS) Head-To-Head Comparison

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

Valuation & Earnings

This table compares Synopsys 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
Synopsys	$7.05 billion	11.97	$1.33 billion	$7.99	56.90
NetSol Technologies	$66.09 million	0.56	$2.92 million	$0.04	78.25

Synopsys has higher revenue and earnings than NetSol Technologies. Synopsys 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 Synopsys and NetSol Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Synopsys	18.89%	7.89%	4.45%
NetSol Technologies	0.78%	1.30%	0.86%

Insider & Institutional Ownership

85.5% of Synopsys shares are owned by institutional investors. Comparatively, 16.0% of NetSol Technologies shares are owned by institutional investors. 0.6% of Synopsys shares are owned by insiders. Comparatively, 13.2% of NetSol Technologies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Synopsys and NetSol Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Synopsys	1	6	11	0	2.56
NetSol Technologies	1	0	0	0	1.00

Synopsys currently has a consensus price target of $562.13, indicating a potential upside of 23.64%. Given Synopsys’ stronger consensus rating and higher possible upside, research analysts clearly believe Synopsys is more favorable than NetSol Technologies.

Risk & Volatility

Synopsys has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, NetSol Technologies has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500.

Summary

Synopsys beats NetSol Technologies on 12 of the 14 factors compared between the two stocks.

About Synopsys

Synopsys, Inc. provides electronic design automation software products used to design and test integrated circuits. It operates in three segments: Design Automation, Design IP, and Software Integrity. The company offers Digital and Custom IC Design solution that provides digital design implementation solutions; Verification solution that offers virtual prototyping, static and formal verification, simulation, emulation, field programmable gate array (FPGA)-based prototyping, and debug solutions; and FPGA design products that are programmed to perform specific functions. It also provides intellectual property (IP) solutions for USB, PCI Express, DDR, Ethernet, MIPI, HDMI, and Bluetooth low energy applications; logic libraries and embedded memories; processor cores, software, and application-specific instruction-set processor tools for embedded applications; security IP solutions; IP solutions for automotive market; and system-on-chip (SoC) infrastructure IP, datapath and building block IP, and verification IP products, as well as mathematical and floating-point components, and Arm AMBA interconnect fabric and peripherals. In addition, the company offers HAPS FPGA-based prototyping systems; virtual prototyping solutions; and Platform Architect solutions for SoC architecture analysis and optimization, as well as optical products, and mechatronic simulations. Further, it provides security and quality testing products, managed services, programs and professional services, and training that enable its customers to detect and remediate security vulnerabilities, and defects in the software development lifecycle, as well as manufacturing solutions. Additionally, the company provides intelligent orchestration solution, software risk manager, and black duck software composition analysis tools. It serves electronics, financial services, automotive, medicine, energy, and industrial areas. The company was incorporated in 1986 and is headquartered in Sunnyvale, 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.