Head to Head Analysis: Netcapital (NASDAQ:NCPL) versus Blackboxstocks (NASDAQ:BLBX)

Blackboxstocks (NASDAQ:BLBX) and Netcapital (NASDAQ:NCPL) are both small-cap business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Volatility and Risk

Blackboxstocks has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500. Comparatively, Netcapital has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500.

Institutional & Insider Ownership

3.6% of Blackboxstocks shares are owned by institutional investors. Comparatively, 30.7% of Netcapital shares are owned by institutional investors. 20.1% of Blackboxstocks shares are owned by insiders. Comparatively, 4.9% of Netcapital shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for Blackboxstocks and Netcapital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blackboxstocks	1	0	0	0	1.00
Netcapital	1	0	0	0	1.00

Earnings & Valuation

This table compares Blackboxstocks and Netcapital”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blackboxstocks	$2.57 million	18.78	-$3.47 million	($1.04)	-10.77
Netcapital	$797,839.00	6.13	-$28.30 million	($16.74)	-0.04

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

Profitability

This table compares Blackboxstocks and Netcapital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Blackboxstocks	-157.79%	-83.85%	-39.78%
Netcapital	-3,674.94%	-39.85%	-32.82%

Summary

Blackboxstocks beats Netcapital on 7 of the 11 factors compared between the two stocks.

About Blackboxstocks

Blackboxstocks Inc. develops and markets financial technology and social media hybrid platform. The company offers Blackbox System, a subscription-based software as a service that provides real-time proprietary analytics and news for stock and options traders. Blackboxstocks Inc. is headquartered in Dallas, Texas.

About Netcapital

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.