Netcapital (NASDAQ:NCPL – Get Free Report) and Value Line (NASDAQ:VALU – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.
Risk and Volatility
Netcapital has a beta of 2.35, meaning that its share price is 135% more volatile than the S&P 500. Comparatively, Value Line has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.
Institutional and Insider Ownership
30.7% of Netcapital shares are held by institutional investors. Comparatively, 6.3% of Value Line shares are held by institutional investors. 4.9% of Netcapital shares are held by insiders. Comparatively, 0.0% of Value Line shares are held by 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.
Earnings and Valuation
This table compares Netcapital and Value Line”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Netcapital | $870,000.00 | 23.25 | -$28.30 million | ($15.49) | -0.17 |
| Value Line | $33.45 million | 11.70 | $21.63 million | $2.11 | 19.78 |
Value Line has higher revenue and earnings than Netcapital. Netcapital is trading at a lower price-to-earnings ratio than Value Line, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings and price targets for Netcapital and Value Line, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Netcapital | 1 | 0 | 0 | 0 | 1.00 |
| Value Line | 0 | 1 | 0 | 0 | 2.00 |
Profitability
This table compares Netcapital and Value Line’s 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% |
| Value Line | 60.27% | 18.43% | 13.14% |
Summary
Value Line beats Netcapital on 8 of the 12 factors compared between the two stocks.
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.
About Value Line
Value Line, Inc. produces and sells investment periodicals and related publications. Its investment periodicals and related publications cover a range of investments, including stocks, mutual funds, exchange traded funds (ETFs), and options. The company's research services include The Value Line Investment Survey, The Value Line Investment Survey – Small and Mid-Cap, The Value Line 600, and The Value Line Fund Advisor Plus that provide statistical and text coverage of various investment securities, with an emphasis placed on its proprietary research, analysis, and statistical ranks. It also provides niche newsletters comprising Value Line Select: Dividend Income & Growth, Value Line Select: ETFs, The Value Line Special Situations Service, The Value Line M&A Service, The Value Line Climate Change Investing Service, and The Value Line Information You Should Know Wealth Newsletter that offer information on a less comprehensive basis for securities that are of particular interest to subscribers; digital versions of its products through its Website, www.valueline.com; The Value Line Research Center online platform; and investment analysis software, such as The Value Line Investment Analyzer and The New Value Line ETFs Service. In addition, the company offers current and historical financial databases comprising fundamental DataFile, estimates and projections, and mutual funds; and copyright products, which include unit investment trusts, variable annuities, managed accounts, and ETFs. Further, it operates as publishing unit for the investment related periodical publications and copyrights; places advertising on behalf of the company's publications; and distributes print publications. It serves individual and professional investors, as well as institutions, including municipal and university libraries, and investment firms. The company was founded in 1931 and is headquartered in New York, New York. Value Line, Inc. is a subsidiary of Arnold Bernhard & Co., Inc.
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