Head to Head Analysis: Netcapital (NCPL) versus Its Peers

Netcapital (NASDAQ:NCPL) is one of 1,745 public companies in the “Capital Markets” industry, but how does it weigh in compared to its rivals? We will compare Netcapital to similar companies based on the strength of its profitability, valuation, risk, earnings, dividends, institutional ownership and analyst recommendations.

Valuation & Earnings

This table compares Netcapital and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Netcapital	$870,000.00	-$28.30 million	-0.11
Netcapital Competitors	$2.50 billion	$394.23 million	15.65

Netcapital’s rivals have higher revenue and earnings than Netcapital. Netcapital is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Netcapital and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Netcapital	-3,806.77%	-40.53%	-32.59%
Netcapital Competitors	300.77%	79.21%	3.63%

Analyst Ratings

This is a breakdown of recent recommendations for Netcapital and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Netcapital	1	0	0	0	1.00
Netcapital Competitors	5526	20066	22390	638	2.37

As a group, “Capital Markets” companies have a potential upside of 25.99%. Given Netcapital’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Netcapital has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

30.7% of Netcapital shares are held by institutional investors. Comparatively, 30.5% of shares of all “Capital Markets” companies are held by institutional investors. 4.9% of Netcapital shares are held by insiders. Comparatively, 12.9% of shares of all “Capital Markets” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Netcapital has a beta of 2.35, suggesting that its stock price is 135% more volatile than the S&P 500. Comparatively, Netcapital’s rivals have a beta of 0.82, suggesting that their average stock price is 18% less volatile than the S&P 500.

Summary

Netcapital rivals beat Netcapital on 11 of the 13 factors compared.

Netcapital Company Profile

Netcapital Inc. operates as a fintech company. It offers Netcapital.com, an SEC-registered funding portal that enables private companies to raise capital online, as well as allows investors to invest from anywhere in the world. The company also provides various services, including automated onboarding process and filing of required regulatory documents; compliance review; custom-built offering page on its portal website; third party transfer agent and custodial services; and rolling closes which provides access to liquidity before final close date of offerings, as well as assistance with annual fillings and direct access to team for ongoing support. In addition, it offers advisor services, which includes incubation of technology start-ups; investors introduction; online marketing; website design and software development; message crafting including pitch decks, offering pages, and ad creation; strategic advice; and technology consulting services. Further, the company provides valuation services, such as business valuation, fairness and solvency opinions, ESOP feasibility and valuation, non-cash charitable contribution, economic analysis of damages, intellectual property appraisals, and compensation studies. Netcapital Inc. is based in Boston, Massachusetts.