Analyzing NetSol Technologies (NASDAQ:NTWK) and SoundHound AI (NASDAQ:SOUN)

SoundHound AI (NASDAQ:SOUN) and NetSol Technologies (NASDAQ:NTWK) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, profitability, earnings, institutional ownership and dividends.

Institutional & Insider Ownership

19.3% of SoundHound AI shares are owned by institutional investors. Comparatively, 16.0% of NetSol Technologies shares are owned by institutional investors. 12.3% of SoundHound AI shares are owned by company insiders. Comparatively, 13.2% of NetSol Technologies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for SoundHound AI and NetSol Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SoundHound AI	0	4	3	0	2.43
NetSol Technologies	0	0	0	0	0.00

SoundHound AI currently has a consensus price target of $11.43, suggesting a potential upside of 27.27%. Given SoundHound AI’s stronger consensus rating and higher probable upside, equities research analysts plainly believe SoundHound AI is more favorable than NetSol Technologies.

Volatility and Risk

SoundHound AI has a beta of 2.71, suggesting that its stock price is 171% more volatile than the S&P 500. Comparatively, NetSol Technologies has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.

Profitability

This table compares SoundHound AI and NetSol Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SoundHound AI	-163.58%	-55.58%	-31.70%
NetSol Technologies	-1.34%	-2.11%	-1.33%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SoundHound AI	$84.69 million	42.30	-$88.94 million	($0.98)	-9.16
NetSol Technologies	$62.05 million	0.44	$680,000.00	($0.07)	-33.57

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

Summary

SoundHound AI beats NetSol Technologies on 8 of the 14 factors compared between the two stocks.

About SoundHound AI

SoundHound AI, Inc. develops independent voice artificial intelligence (AI) solutions that enables businesses across automotive, TV, and IoT, and to customer service industries to deliver high-quality conversational experiences to their customers. Its products include Houndify platform that offers a suite of Houndify tools to help brands build conversational voice assistants, such as Application Programming Interfaces (API) for text and voice queries, support for custom commands, extensive library of content domains, inclusive software development kit platforms, collaboration capabilities, diagnostic tools, and built-in analytics; SoundHound Chat AI that integrates with knowledge domains, pulling real-time data like weather, sports, stocks, flight status, and restaurants; and SoundHound Smart Answering is built to offer customer establishments custom AI-powered voice assistant. The company's products also include CaiNET software that uses machine learning to enhance how domains work together to handle queries; CaiLAN software that arbitrates responses so users get answers from the right domain; Dynamic Interaction a real-time, multimodal customer service interface; Smart Ordering which offers an easy-to-understand voice assistant for restaurants; Employee Assist; automatic speech recognition; natural language understanding; wake words; custom domains; text-to-speech; and embedded voice solutions. The company was founded in 2005 and is headquartered in Santa Clara, California.

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.