Netcapital (NASDAQ:NCPL – Get Free Report) and Intchains Group (NASDAQ:ICG – Get Free Report) are both small-cap business services companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.
Profitability
This table compares Netcapital and Intchains 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% |
| Intchains Group | -24.68% | -5.29% | -5.08% |
Risk & Volatility
Netcapital has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500. Comparatively, Intchains Group has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Netcapital | $870,000.00 | 3.39 | -$28.30 million | ($15.49) | -0.02 |
| Intchains Group | $31.58 million | 2.10 | -$6.80 million | ($0.12) | -9.08 |
Intchains Group has higher revenue and earnings than Netcapital. Intchains Group is trading at a lower price-to-earnings ratio than Netcapital, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
30.7% of Netcapital shares are owned by institutional investors. 4.9% of Netcapital shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings and price targets for Netcapital and Intchains Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Netcapital | 1 | 0 | 0 | 0 | 1.00 |
| Intchains Group | 1 | 1 | 2 | 0 | 2.25 |
Intchains Group has a consensus target price of $5.25, suggesting a potential upside of 381.65%. Given Intchains Group’s stronger consensus rating and higher probable upside, analysts clearly believe Intchains Group is more favorable than Netcapital.
Summary
Intchains Group beats Netcapital on 10 of the 14 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 Intchains Group
Intchains Group Limited designs and sells application-specific integrated circuit chips for blockchain applications in the People's Republic of China. The company also offers ancillary software, hardware, and other products. It serves distributors. Intchains Group Limited was founded in 2017 and is based in Pudong, China.
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