Netcapital (NCPL) vs. Its Competitors Financial Analysis

Netcapital (OTCMKTS:NCPLGet Rating) is one of 68 public companies in the “Nondepository credit institutions” industry, but how does it compare to its competitors? We will compare Netcapital to related companies based on the strength of its risk, profitability, dividends, valuation, earnings, institutional ownership and analyst recommendations.

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Netcapital $5.48 million $3.50 million 1.60
Netcapital Competitors $4.42 billion $858.92 million -2.57

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

Insider and Institutional Ownership

16.2% of Netcapital shares are owned by institutional investors. Comparatively, 35.6% of shares of all “Nondepository credit institutions” companies are owned by institutional investors. 2.3% of Netcapital shares are owned by insiders. Comparatively, 23.1% of shares of all “Nondepository credit institutions” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Netcapital 37.90% 9.99% 8.33%
Netcapital Competitors -44.93% 6.83% 0.79%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Netcapital and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Netcapital 0 0 0 0 N/A
Netcapital Competitors 262 1174 1698 67 2.49

As a group, “Nondepository credit institutions” companies have a potential upside of 34.16%. Given Netcapital’s competitors higher probable upside, analysts clearly believe Netcapital has less favorable growth aspects than its competitors.

Summary

Netcapital competitors beat Netcapital on 5 of the 9 factors compared.

About Netcapital

(Get Rating)

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. It also provides various services, including a fully automated onboarding process; automated filing of required regulatory documents; compliance review; custom-built offering page on its portal website; third party transfer agent and custodial services; email marketing to its proprietary list of investors; rolling closes, which provide potential access to liquidity before final close date of offering; assistance with annual filings; and ongoing support services. In addition, the company offers advisory services, such as incubation of technology start-ups; investor introduction; digital marketing; website design, software, and software development; message crafting, including pitch decks, offering pages, and ad creation; strategic advice; and technology consulting services. Further, it provides business valuations; fairness and solvency opinions; ESOP feasibility and valuation; non-cash charitable contributions; economic analysis of damages; intellectual property appraisals; and compensation studies. Netcapital Inc. was incorporated in 1984 and is based in Boston, Massachusetts. Netcapital Inc. is a subsidiary of NetCapital Systems LLC.

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