Head to Head Analysis: Netcapital (NASDAQ:NCPL) vs. Core Scientific (NASDAQ:CORZ)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Netcapital	-100.71%	-12.80%	-11.48%
Core Scientific	N/A	N/A	N/A

Institutional & Insider Ownership

30.7% of Netcapital shares are owned by institutional investors. 7.8% of Netcapital shares are owned by insiders. Comparatively, 32.0% of Core Scientific shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Netcapital and Core Scientific’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Netcapital	$4.95 million	15.16	$2.95 million	($0.05)	-75.00
Core Scientific	$561.04 million	2.82	N/A	N/A	N/A

Netcapital has higher earnings, but lower revenue than Core Scientific.

Analyst Recommendations

This is a summary of recent ratings for Netcapital and Core Scientific, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Netcapital	0	0	0	0	N/A
Core Scientific	0	0	7	0	3.00

Core Scientific has a consensus target price of $14.71, suggesting a potential upside of 65.52%. Given Core Scientific’s higher probable upside, analysts clearly believe Core Scientific is more favorable than Netcapital.

Summary

Core Scientific beats Netcapital on 7 of the 9 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 Core Scientific

Core Scientific, Inc. provides digital asset mining services in North America. It operates through two segments, Mining and Hosting. The company offers blockchain infrastructure, software solutions, and services; and operates data center mining facilities. It also mines digital assets for its own account; and provides hosting services for other large bitcoin miners, which include deployment, monitoring, trouble shooting, optimization, and maintenance of its customers' digital asset mining equipment. In addition, the company provides electrical power, repair, and other infrastructure services to operate, maintain, and earn digital assets; and sells mining equipment to customers. Core Scientific, Inc. was founded in 2017 and is headquartered in Dover, Delaware.