Netcapital (NASDAQ:NCPL – Get Free Report) and Blackboxstocks (NASDAQ:BLBX – Get Free Report) are both small-cap business services companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.
Valuation and Earnings
This table compares Netcapital and Blackboxstocks”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Netcapital | $797,839.00 | 6.13 | -$28.30 million | ($16.74) | -0.04 |
| Blackboxstocks | $2.57 million | 18.78 | -$3.47 million | ($1.04) | -10.77 |
Volatility and Risk
Netcapital has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, Blackboxstocks has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500.
Insider & Institutional Ownership
30.7% of Netcapital shares are held by institutional investors. Comparatively, 3.6% of Blackboxstocks shares are held by institutional investors. 4.9% of Netcapital shares are held by insiders. Comparatively, 20.1% of Blackboxstocks shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Netcapital and Blackboxstocks’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Netcapital | -3,674.94% | -39.85% | -32.82% |
| Blackboxstocks | -157.79% | -83.85% | -39.78% |
Analyst Recommendations
This is a breakdown of current ratings and target prices for Netcapital and Blackboxstocks, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Netcapital | 1 | 0 | 0 | 0 | 1.00 |
| Blackboxstocks | 1 | 0 | 0 | 0 | 1.00 |
Summary
Blackboxstocks beats Netcapital on 7 of the 11 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 Blackboxstocks
Blackboxstocks Inc. develops and markets financial technology and social media hybrid platform. The company offers Blackbox System, a subscription-based software as a service that provides real-time proprietary analytics and news for stock and options traders. Blackboxstocks Inc. is headquartered in Dallas, Texas.
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