Netcapital (NASDAQ:NCPL – Get Free Report) and DevvStream (NASDAQ:DEVS – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, institutional ownership, profitability, dividends, analyst recommendations and valuation.
Risk & Volatility
Netcapital has a beta of 2.52, indicating that its share price is 152% more volatile than the S&P 500. Comparatively, DevvStream has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500.
Institutional and Insider Ownership
30.7% of Netcapital shares are held by institutional investors. Comparatively, 75.8% of DevvStream shares are held by institutional investors. 4.9% of Netcapital shares are held by insiders. Comparatively, 3.3% of DevvStream shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Netcapital | $870,000.00 | 3.76 | -$28.30 million | ($15.49) | -0.03 |
| DevvStream | $24,493.00 | 219.06 | -$12.07 million | ($1.54) | -0.10 |
DevvStream has lower revenue, but higher earnings than Netcapital. DevvStream is trading at a lower price-to-earnings ratio than Netcapital, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Netcapital and DevvStream’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Netcapital | -3,806.77% | -40.53% | -32.59% |
| DevvStream | N/A | N/A | -202.28% |
Analyst Recommendations
This is a summary of recent ratings and target prices for Netcapital and DevvStream, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Netcapital | 1 | 0 | 0 | 0 | 1.00 |
| DevvStream | 1 | 0 | 0 | 0 | 1.00 |
Summary
DevvStream beats Netcapital on 6 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 DevvStream
DevvStream Holdings Inc. is a carbon credit project co-development and generation firm specializing in technology-based solutions. DevvStream Holdings Inc., formerly known as Focus Impact Acquisition Corp., is based in NEW YORK.
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