Definitive Healthcare (NASDAQ:DH – Get Free Report) and NetSol Technologies (NASDAQ:NTWK – Get Free Report) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitability and dividends.
Volatility and Risk
Definitive Healthcare has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. Comparatively, NetSol Technologies has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.
Profitability
This table compares Definitive Healthcare and NetSol Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Definitive Healthcare | -142.38% | 1.76% | 1.12% |
| NetSol Technologies | 1.17% | 1.84% | 1.17% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Definitive Healthcare | $255.85 million | 1.91 | -$202.39 million | ($3.10) | -1.36 |
| NetSol Technologies | $61.75 million | 0.49 | $680,000.00 | $0.07 | 37.29 |
NetSol Technologies has lower revenue, but higher earnings than Definitive Healthcare. Definitive Healthcare is trading at a lower price-to-earnings ratio than NetSol Technologies, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations and price targets for Definitive Healthcare and NetSol Technologies, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Definitive Healthcare | 1 | 8 | 3 | 0 | 2.17 |
| NetSol Technologies | 0 | 0 | 0 | 0 | 0.00 |
Definitive Healthcare currently has a consensus target price of $5.72, suggesting a potential upside of 35.28%. Given Definitive Healthcare’s stronger consensus rating and higher probable upside, equities analysts plainly believe Definitive Healthcare is more favorable than NetSol Technologies.
Institutional and Insider Ownership
98.7% of Definitive Healthcare shares are owned by institutional investors. Comparatively, 16.0% of NetSol Technologies shares are owned by institutional investors. 14.8% of Definitive Healthcare shares are owned by insiders. Comparatively, 13.2% of NetSol Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
Definitive Healthcare beats NetSol Technologies on 8 of the 14 factors compared between the two stocks.
About Definitive Healthcare
Definitive Healthcare Corp., together with its subsidiaries, provides software as a service (SaaS) healthcare commercial intelligence platform in the United States and internationally. Its SaaS platform provides information on healthcare providers and their activities to help its customers from product development to go-to-market planning, and sales and marketing execution. The company's platform consists of various functional areas, such as sales, marketing, clinical research and product development, strategy, talent acquisition, and physician network management. It serves biopharmaceutical and medical device companies, healthcare information technology companies, and healthcare providers; and other diversified companies comprising staffing and commercial real estate firms, financial institutions, and other organizations in the healthcare ecosystem. Definitive Healthcare Corp. was founded in 2011 and is headquartered in Framingham, Massachusetts.
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.
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