NetSol Technologies (NASDAQ:NTWK) versus Trimble (NASDAQ:TRMB) Financial Contrast

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

Institutional and Insider Ownership

93.2% of Trimble shares are owned by institutional investors. Comparatively, 16.0% of NetSol Technologies shares are owned by institutional investors. 0.6% of Trimble shares are owned by insiders. Comparatively, 13.5% 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 Ratings

This is a summary of recent recommendations for Trimble and NetSol Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trimble	1	2	9	0	2.67
NetSol Technologies	0	1	2	0	2.67

Trimble presently has a consensus target price of $78.22, suggesting a potential upside of 40.11%. NetSol Technologies has a consensus target price of $9.00, suggesting a potential upside of 70.45%. Given NetSol Technologies’ higher probable upside, analysts clearly believe NetSol Technologies is more favorable than Trimble.

Earnings and Valuation

This table compares Trimble and NetSol Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trimble	$3.59 billion	3.57	$424.00 million	($0.70)	-79.76
NetSol Technologies	$74.40 million	0.85	$2.95 million	$0.25	21.12

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

Volatility & Risk

Trimble has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500. Comparatively, NetSol Technologies has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Trimble	-4.08%	12.73%	7.76%
NetSol Technologies	4.02%	6.79%	4.35%

Summary

Trimble beats NetSol Technologies on 8 of the 13 factors compared between the two stocks.

About Trimble

Trimble Inc. develops technology that connects the physical and digital worlds to help customers plan, build, and manage infrastructure and other assets. Its offerings combine positioning technologies, hardware, software, and data services for industries including construction, geospatial, transportation, and agriculture. Products and services include GNSS and surveying equipment, machine-control systems, mapping and measurement tools, and software for design, project management, fleet operations, and asset tracking.

About NetSol Technologies

NetSol Technologies, Inc. is a global provider of enterprise software and information technology services, with a primary focus on the asset finance and leasing industry. The company serves vehicle manufacturers, banks, financial institutions, equipment lessors and other organizations that manage commercial lending, leasing and financing operations. Its software offerings are designed to support the full lifecycle of financing transactions, including origination, credit and contract management, billing, accounting, asset management, collections and portfolio administration.