Reviewing Avid Technology (AVID) & NetSol Technologies (NTWK)

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

Volatility and Risk

Avid Technology has a beta of 1.95, indicating that its share price is 95% more volatile than the S&P 500. Comparatively, NetSol Technologies has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500.

Insider & Institutional Ownership

70.8% of Avid Technology shares are held by institutional investors. Comparatively, 19.1% of NetSol Technologies shares are held by institutional investors. 7.9% of Avid Technology shares are held by insiders. Comparatively, 11.8% of NetSol Technologies shares are held by 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 summary of current recommendations for Avid Technology and NetSol Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avid Technology 1 0 0 0 1.00
NetSol Technologies 0 0 0 0 N/A

Avid Technology presently has a consensus price target of $4.50, indicating a potential downside of 13.46%. Given Avid Technology’s higher possible upside, equities research analysts clearly believe Avid Technology is more favorable than NetSol Technologies.

Valuation and Earnings

This table compares Avid Technology and NetSol Technologies’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Avid Technology $419.00 million 0.52 -$13.55 million $0.40 13.00
NetSol Technologies $65.37 million 0.97 -$4.97 million N/A N/A

NetSol Technologies has lower revenue, but higher earnings than Avid Technology.

Profitability

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

Net Margins Return on Equity Return on Assets
Avid Technology -4.99% -2.51% 2.64%
NetSol Technologies 0.01% 0.01% 0.01%

Avid Technology Company Profile

Avid Technology, Inc. develops, markets, sells, and supports software, hardware, and integrated solutions for video and audio content creation, management, and distribution worldwide. The company's video products and solutions include the Media Composer product line that is used to edit film, television programming, news broadcasts, commercials, and other video content; Avid shared storage systems and Avid Interplay asset management solutions, which provide complete network, storage, and database solutions to enable users to simultaneously share and manage media assets throughout a project or organization. Its audio products and solutions include Pro Tools digital audio software and workstation solutions to facilitate the audio production process, including music and sound creation, recording, editing, signal processing, integrated surround mixing and mastering, and reference video playback; and a range of complementary control surfaces and consoles, including the System 5 and System 6 modular consoles, as well as the VENUE live-sound systems and Sibelius-branded notation software. The company also provides various professional services, such as workflow design and consulting; program and project management; system installation and commissioning; custom development and role-based product level training; public and private training to customers and alliance partners; and service contracts and support plans, as well as develops and licenses curriculum content for use by third party Avid Learning partners to deliver training to customers, users, and alliance partners. It offers its products and solutions to customers in broadcast and media, video and audio post, and professional markets through a network of sales representatives, independent distributors, value-added resellers, dealers, retailers, and digital sales channels. The company was founded in 1987 and is headquartered in Burlington, Massachusetts.

NetSol Technologies Company Profile

NetSol Technologies, Inc. designs, develops, markets, and exports software products to the automobile financing and leasing, banking, and financial services industries worldwide. It also provides system integration, consulting, and IT products and services. The company offers NetSol Financial Suite (NFS), an end-to-end solution covering leasing and finance cycle for the asset finance industry; and NFS Ascent platform, a lease accounting and contract processing engine. Its NFS includes Point of Sale, a front office processing system for companies in the financial sector; Credit Application Processing System that handles incoming credit applications from dealers, agents, brokers, and the direct sales force; Contract Management System, which enables its users to manage and maintain a contract throughout its life cycle; Wholesale Finance System (WFS) that automates and manages the floor plan/bailment activities; Dealer Auditor Access System, a Web-based solution used in conjunction with WFS; and Fleet Management System to handle fleet management needs. The company's NFS Ascent comprises LeasePak, which handles various aspects of the lease or loan lifecycle; and LeasePak software-as-a-service to small and mid-sized leasing and finance companies. In addition, it offers LeaseSoft, a full lifecycle lease and finance system for funder market; and LoanSoft for consumer loan market. Further, the company provides NFS Mobility that enables a sales force for the finance and leasing company to access various channels, such as point of sale, field investigation, and auditing. Its NFS Mobility includes mAccount, a self-service mobile solution; mPOS application, a Web and mobile enabled platform; mDealer that provides a mobile platform; mAuditor, which schedules visits, records audit exceptions, and tracks assets; and Mobile Field Investigator that permits applicants for detail verification. The company was founded in 1997 and is headquartered in Calabasas, California.

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