Netcapital (NASDAQ:NCPL – Get Free Report) and Wi-LAN (OTCMKTS:QTRHF – Get Free Report) are both small-cap business services companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.
Institutional and Insider Ownership
30.7% of Netcapital shares are owned by institutional investors. 4.9% of Netcapital shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk and Volatility
Netcapital has a beta of 2.22, meaning that its stock price is 122% more volatile than the S&P 500. Comparatively, Wi-LAN has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Netcapital | 1 | 0 | 0 | 0 | 1.00 |
| Wi-LAN | 0 | 0 | 0 | 0 | 0.00 |
Valuation & Earnings
This table compares Netcapital and Wi-LAN”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Netcapital | $870,000.00 | 7.22 | -$28.30 million | ($15.49) | -0.05 |
| Wi-LAN | $155.17 million | 1.00 | -$54.41 million | ($0.43) | -3.02 |
Netcapital has higher earnings, but lower revenue than Wi-LAN. Wi-LAN 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 Wi-LAN’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% |
| Wi-LAN | -32.08% | -48.25% | -24.07% |
Summary
Netcapital beats Wi-LAN on 8 of the 12 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 Wi-LAN
Quarterhill Inc., together with its subsidiaries, operates in intelligent transportation system business in Canada and internationally. The company offers riteSuite, which offers mobility solutions, such as all-electronic tolling, dynamic pricing, agency interoperability, hosted mobility solutions, and machine learning; back-office solutions, which offers account management, customer service, violation processing, and technical services operations; roadside solutions, which offers onsite and remote maintenance and field operations services, including tolling facility support, lane equipment control, and cash management services; and international road dynamics products and services, which offers automated truck weigh stations, toll road systems and equipment, red light and speed enforcement systems, and traffic management and safety systems. It also provides VectorSense, a tire sensor suite; Vehicle Information-In-Motion traffic intelligence system, an integrated traffic control system; permanent Weigh-InMotion systems; portable slow speed Weigh-In-Motion systems; portable wheel load scales; traffic data collection products, vehicle and axle detection equipment, and automated vehicle identification services and equipment; and other hardware and software products and offerings. The company was formerly known as Wi-LAN Inc. and changed its name to Quarterhill Inc. in June 2017. Quarterhill Inc. was incorporated in 1992 and is headquartered in Toronto, Canada.
Receive News & Ratings for Netcapital Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Netcapital and related companies with MarketBeat.com's FREE daily email newsletter.
