Analyzing Netcapital (NCPL) and Its Rivals

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

Analyst Ratings

This is a summary of current ratings 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 35.10%. Given Netcapital’s competitors higher possible upside, analysts plainly believe Netcapital has less favorable growth aspects than its competitors.

Institutional and Insider 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 company insiders. Comparatively, 23.1% of shares of all “Nondepository credit institutions” companies 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.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Netcapital	$5.48 million	$3.50 million	1.59
Netcapital Competitors	$4.39 billion	$858.92 million	-2.70

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.

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%	8.34%
Netcapital Competitors	-44.88%	6.87%	0.80%

Summary

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

Netcapital Company Profile

(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.