Financial Contrast: NetSol Technologies (NASDAQ:NTWK) vs. Hello Group (NASDAQ:MOMO)

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

Insider & Institutional Ownership

16.0% of NetSol Technologies shares are held by institutional investors. Comparatively, 51.0% of Hello Group shares are held by institutional investors. 13.2% of NetSol Technologies shares are held by company insiders. Comparatively, 61.4% of Hello Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

NetSol Technologies has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, Hello Group has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for NetSol Technologies and Hello Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NetSol Technologies	0	0	0	0	N/A
Hello Group	1	2	2	0	2.20

Hello Group has a consensus price target of $7.93, suggesting a potential upside of 10.22%. Given Hello Group’s higher possible upside, analysts clearly believe Hello Group is more favorable than NetSol Technologies.

Profitability

This table compares NetSol Technologies and Hello Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NetSol Technologies	1.11%	1.77%	1.14%
Hello Group	12.40%	12.09%	8.27%

Earnings & Valuation

This table compares NetSol Technologies and Hello Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NetSol Technologies	$61.39 million	0.54	$680,000.00	$0.06	48.00
Hello Group	$11.30 billion	0.09	$275.72 million	$1.00	7.19

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

Summary

Hello Group beats NetSol Technologies on 10 of the 13 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 Hello Group

Hello Group Inc. provides mobile-based social and entertainment services in the People's Republic of China. It operates in three segments: Momo, Tantan, and QOOL. The company offers Momo, a mobile application that connects people and facilitates social interactions based on location, interests, and various online recreational activities, including live talent shows, short videos, social games, as well as other video- and audio-based interactive experiences, such as online parties, mobile karaoke and user participated reality shows; Tantan, a social and dating application; and other applications under the Hertz, Soulchill, Duidui, and Tietie names. The company also provides livestream services for various content and activities comprising talent shows, such as singing, dancing, and talk shows, as well as casual chatting, and other forms of interactions between broadcasters and viewers; value-added services; advertising and marketing services; and mobile games. The company was formerly known as Momo Inc. and changed its name to Hello Group Inc. in August 2021. Hello Group Inc. was incorporated in 2011 and is headquartered in Beijing, the People's Republic of China.