Contrasting Binah Capital Group (NASDAQ:BCG) and Netcapital (NASDAQ:NCPL)

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

Valuation & Earnings

This table compares Netcapital and Binah Capital Group”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	11.64	-$4.99 million	($0.05)	-57.60
Binah Capital Group	$160.39 million	0.29	$570,000.00	N/A	N/A

Binah Capital Group has higher revenue and earnings than Netcapital.

Profitability

This table compares Netcapital and Binah Capital Group’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%
Binah Capital Group	N/A	-5.28%	-7.16%

Insider & Institutional Ownership

30.7% of Netcapital shares are held by institutional investors. Comparatively, 5.0% of Binah Capital Group shares are held by institutional investors. 7.8% of Netcapital shares are held by insiders. Comparatively, 83.0% of Binah Capital Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Netcapital has a beta of -0.56, meaning that its share price is 156% less volatile than the S&P 500. Comparatively, Binah Capital Group has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Netcapital and Binah Capital Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Netcapital	0	0	0	0	N/A
Binah Capital Group	0	0	0	0	N/A

Summary

Binah Capital Group 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 Binah Capital Group

Binah Capital Group, Inc., together with its subsidiaries, operates in the wealth management industry. The company provides access to stock, bond, exchange-traded fund, and options execution services; and research, compliance, supervision, and accounting and related services for financial advisors. It also offers mutual funds and insurance products, as well as alternative investments, such as non-traded real estate investment trusts, unit trusts, and fixed and variable annuities. The company was founded in 2016 and is headquartered in Albany, New York. Binah Capital Group, Inc. operates as a subsidiary of MHC Securities, LLC.