Critical Survey: Capstone (CAPS) and Its Competitors

Insider & Institutional Ownership

2.5% of Capstone shares are held by institutional investors. Comparatively, 39.5% of shares of all “Pharmaceutical preparations” companies are held by institutional investors. 59.1% of Capstone shares are held by insiders. Comparatively, 13.8% of shares of all “Pharmaceutical preparations” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Capstone and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Capstone	N/A	N/A	N/A
Capstone Competitors	-2,625.49%	-359.63%	-43.39%

Valuation and Earnings

This table compares Capstone and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Capstone	$43.38 million	N/A	-1.70
Capstone Competitors	$440.86 million	-$69.10 million	-9.23

Capstone’s rivals have higher revenue, but lower earnings than Capstone. Capstone is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Risk & Volatility

Capstone has a beta of -0.81, suggesting that its share price is 181% less volatile than the S&P 500. Comparatively, Capstone’s rivals have a beta of 10.31, suggesting that their average share price is 931% more volatile than the S&P 500.

Summary

Capstone beats its rivals on 5 of the 8 factors compared.

About Capstone

Capstone Holding Corp., through its subsidiaries, engages in the distribution of masonry stone products in the United States. Its masonry stone products include manufactured and natural stone cladding products, natural stone landscape products and related goods for residential and commercial construction. The company was formerly known as Capstone Therapeutics Corp. and changed its name to Capstone Holding Corp. in February 2022. Capstone Holding Corp. was incorporated in 1987 and is headquartered in Tempe, Arizona. Capstone Holding Corp. operates as a subsidiary of BP Peptides, LLC.