Netcapital (NASDAQ:NCPL – Get Free Report) and Westwood Holdings Group (NYSE:WHG – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, analyst recommendations, earnings and institutional ownership.
Analyst Ratings
This is a summary of recent ratings and price targets for Netcapital and Westwood Holdings Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Netcapital | 1 | 0 | 0 | 0 | 1.00 |
| Westwood Holdings Group | 0 | 0 | 1 | 0 | 3.00 |
Insider and Institutional Ownership
30.7% of Netcapital shares are owned by institutional investors. Comparatively, 56.6% of Westwood Holdings Group shares are owned by institutional investors. 4.9% of Netcapital shares are owned by insiders. Comparatively, 17.4% of Westwood Holdings Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Risk & Volatility
Netcapital has a beta of 2.35, indicating that its share price is 135% more volatile than the S&P 500. Comparatively, Westwood Holdings Group has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500.
Profitability
This table compares Netcapital and Westwood Holdings Group’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% |
| Westwood Holdings Group | 7.73% | 8.10% | 6.59% |
Earnings and Valuation
This table compares Netcapital and Westwood Holdings Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Netcapital | $870,000.00 | 9.93 | -$28.30 million | ($15.49) | -0.07 |
| Westwood Holdings Group | $97.76 million | 1.82 | $7.06 million | $0.88 | 21.35 |
Westwood Holdings Group has higher revenue and earnings than Netcapital. Netcapital is trading at a lower price-to-earnings ratio than Westwood Holdings Group, indicating that it is currently the more affordable of the two stocks.
Summary
Westwood Holdings Group beats Netcapital on 11 of the 13 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 Westwood Holdings Group
Westwood Holdings Group, Inc., through its subsidiaries, manages investment assets and provides services for its clients. The company operates in two segments, Advisory and Trust. The Advisory segment provides investment advisory services to corporate retirement plans, public retirement plans, endowments, foundations, individuals, and the Westwood Funds; and investment sub-advisory services to mutual funds, pooled investment vehicles, and its Trust segment. The Trust segment offers trust and custodial services; and participates in common trust funds that it sponsors to institutions and high net worth individuals. Westwood Holdings Group, Inc. was founded in 1983 and is based in Dallas, Texas.
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