Analyzing NetClass Technology (NASDAQ:NTCL) and Cognyte Software (NASDAQ:CGNT)

NetClass Technology (NASDAQ:NTCL) and Cognyte Software (NASDAQ:CGNT) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, profitability, analyst recommendations, risk and valuation.

Insider & Institutional Ownership

72.9% of Cognyte Software shares are owned by institutional investors. 62.7% of Cognyte Software shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for NetClass Technology and Cognyte Software, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NetClass Technology	1	0	0	0	1.00
Cognyte Software	2	1	2	0	2.00

Cognyte Software has a consensus price target of $13.50, indicating a potential upside of 62.06%. Given Cognyte Software’s stronger consensus rating and higher possible upside, analysts plainly believe Cognyte Software is more favorable than NetClass Technology.

Valuation & Earnings

This table compares NetClass Technology and Cognyte Software”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NetClass Technology	$9.81 million	0.81	-$10.82 million	N/A	N/A
Cognyte Software	$400.04 million	1.52	-$640,000.00	($0.04)	-208.25

Cognyte Software has higher revenue and earnings than NetClass Technology.

Volatility & Risk

NetClass Technology has a beta of -1.97, indicating that its share price is 297% less volatile than the S&P 500. Comparatively, Cognyte Software has a beta of 1.64, indicating that its share price is 64% more volatile than the S&P 500.

Profitability

This table compares NetClass Technology and Cognyte Software’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NetClass Technology	N/A	N/A	N/A
Cognyte Software	-0.66%	-0.45%	-0.20%

Summary

Cognyte Software beats NetClass Technology on 9 of the 12 factors compared between the two stocks.

About NetClass Technology

Netclass Technology, Inc. operates as a holding company, which provides IT solutions to schools, training institutions, corporations, public agencies and other institutions. Its solutions include teaching management, campus management, online teaching, online examination, epidemic prevention and control, education credit block chain system, and lecturer evaluation services. The company was founded January 4, 2022 and is headquartered in Shanghai, China.

About Cognyte Software

Cognyte Software Ltd. provides an investigative analytics software to governments and enterprises worldwide. Its Actionable Intelligence for a Safer World, an open software designed to help governments and enterprises accelerate and enhance the effectiveness of investigations. The company offers network intelligence analytics, threat intelligence analytics, decision intelligence analytics, and operational intelligence analytics solutions. Its solutions are designed to support various use cases and support a range of users, including data analysts, investigation managers, and security operations center operators, as well as operational field teams. In addition, the company provides customer support, professional, and integration services. Its government customers include national, regional, and local government agencies. Cognyte Software Ltd. was incorporated in 2020 and is headquartered in Herzliya, Israel.