NetSol Technologies (NASDAQ:NTWK) vs. ACI Worldwide (NASDAQ:ACIW) Financial Contrast

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NetSol Technologies	$66.09 million	0.63	$2.92 million	$0.16	22.13
ACI Worldwide	$1.76 billion	2.49	$226.66 million	$2.17	19.90

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

	Net Margins	Return on Equity	Return on Assets
NetSol Technologies	2.74%	4.68%	3.11%
ACI Worldwide	12.88%	16.44%	7.66%

Volatility & Risk

NetSol Technologies has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, ACI Worldwide has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500.

Insider & Institutional Ownership

16.0% of NetSol Technologies shares are owned by institutional investors. Comparatively, 94.7% of ACI Worldwide shares are owned by institutional investors. 15.0% of NetSol Technologies shares are owned by company insiders. Comparatively, 1.1% of ACI Worldwide shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for NetSol Technologies and ACI Worldwide, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NetSol Technologies	0	1	0	0	2.00
ACI Worldwide	1	1	3	0	2.40

ACI Worldwide has a consensus target price of $60.00, suggesting a potential upside of 38.92%. Given ACI Worldwide’s stronger consensus rating and higher probable upside, analysts plainly believe ACI Worldwide is more favorable than NetSol Technologies.

Summary

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

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.

About ACI Worldwide

ACI Worldwide, Inc., a software company, develops, markets, installs, and supports a range of software products and solutions for facilitating digital payments in the United States and internationally. The company operates in three segments: Banks, Merchants, and Billers. The company offers ACI Acquiring, a solution to process credit, debit, and prepaid card transactions, deliver digital innovation, and fraud prevention; ACI Issuing, a digital payment issuing solution for new payment offering; and ACI Enterprise Payments Platform that provides payment processing and orchestration capabilities for digital payments. It also provides ACI Low Value Real-Time Payments, a platform for processing real-time payments; and ACI High Value Real-Time Payments, a payments engine that offers multi-bank, multi-currency, 24×7 payment processing, and SWIFT messaging. In addition, the company offers ACI Payments Orchestration Platform for optimizing payments; omni-channel payment platform; ACI Fraud Management, a real-time approach to fraud management; and ACI Speedpay, an integrated suite of digital billing, payment, disbursement, and communication services. The company offers electronic bill presentment and payment services to consumer finance, insurance, healthcare, higher education, utility, government, telecommunications, and mortgage sectors; implementation services, include product installations and configurations, and custom software modifications; and business and technical consultancy, on-site support, product education, and testing services, as well as distributes or acts as a sales agent for software developed by third parties. It markets its products under the ACI Worldwide brand. The company was formerly known as Transaction Systems Architects, Inc. and changed its name to ACI Worldwide, Inc. in July 2007. The company was founded in 1975 and is based in Elkhorn, Nebraska.