TOP Financial Group (NASDAQ:TOP – Get Free Report) and Netcapital (NASDAQ:NCPL – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.
Insider & Institutional Ownership
0.3% of TOP Financial Group shares are owned by institutional investors. Comparatively, 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 will outperform the market over the long term.
Earnings and Valuation
This table compares TOP Financial Group and Netcapital”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TOP Financial Group | $4.72 million | 390.40 | -$1.17 million | ($0.02) | -757.00 |
| Netcapital | $870,000.00 | 9.11 | -$28.30 million | ($15.49) | -0.07 |
TOP Financial Group has higher revenue and earnings than Netcapital. TOP Financial Group is trading at a lower price-to-earnings ratio than Netcapital, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
TOP Financial Group has a beta of -1.08, suggesting that its stock price is 208% less volatile than the S&P 500. Comparatively, Netcapital has a beta of 2.52, suggesting that its stock price is 152% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for TOP Financial Group and Netcapital, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TOP Financial Group | 1 | 0 | 0 | 0 | 1.00 |
| Netcapital | 1 | 0 | 0 | 0 | 1.00 |
Profitability
This table compares TOP Financial Group and Netcapital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TOP Financial Group | N/A | N/A | N/A |
| Netcapital | -3,806.77% | -40.53% | -32.59% |
Summary
TOP Financial Group beats Netcapital on 7 of the 11 factors compared between the two stocks.
About TOP Financial Group
TOP Financial Group Limited, through its subsidiaries, operates as an online brokerage company in Hong Kong. It is involved in the trading of local and overseas equities, futures, and options products; and the provision of brokerage and value-added services, including trade order placement and execution, account management, and customer support services. The company provides a range of futures products, such as index futures, forex futures, agricultural product futures, energy futures, and precious metal futures. It also offers stock brokerage, options brokerage, consulting services, currency exchange services, structured note subscriber services, and margin financing services. The company was formerly known as Zhong Yang Financial Group Limited and changed its name to TOP Financial Group Limited in July 2022. TOP Financial Group Limited was founded in 2015 and is based in Hong Kong, Hong Kong. TOP Financial Group Limited is a subsidiary of Zhong Yang Holdings (BVI) Limited.
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.
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