Binah Capital Group (NASDAQ:BCG) vs. Netcapital (NASDAQ:NCPL) Financial Analysis

Binah Capital Group (NASDAQ:BCG) and Netcapital (NASDAQ:NCPL) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their institutional ownership, earnings, profitability, analyst recommendations, dividends, valuation and risk.

Profitability

This table compares Binah Capital Group and Netcapital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Binah Capital Group	N/A	-5.28%	-7.16%
Netcapital	-100.71%	-12.80%	-11.48%

Analyst Recommendations

This is a summary of recent ratings for Binah Capital Group and Netcapital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Binah Capital Group	0	0	0	0	N/A
Netcapital	0	0	0	0	N/A

Valuation & Earnings

This table compares Binah Capital Group and Netcapital”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Binah Capital Group	$167.96 million	0.28	$570,000.00	N/A	N/A
Netcapital	$4.95 million	10.47	-$4.99 million	($0.05)	-51.80

Binah Capital Group has higher revenue and earnings than Netcapital.

Institutional & Insider Ownership

5.0% of Binah Capital Group shares are owned by institutional investors. Comparatively, 30.7% of Netcapital shares are owned by institutional investors. 83.0% of Binah Capital Group shares are owned by company insiders. Comparatively, 7.8% of Netcapital shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Binah Capital Group has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500. Comparatively, Netcapital has a beta of -0.56, suggesting that its share price is 156% less volatile than the S&P 500.

Summary

Binah Capital Group beats Netcapital on 7 of the 9 factors compared between the two stocks.

About Binah Capital Group

Binah Capital Group, Inc., together with its subsidiaries, operates in the wealth management industry. The company provides access to stock, bond, exchange-traded fund, and options execution services; and research, compliance, supervision, and accounting and related services for financial advisors. It also offers mutual funds and insurance products, as well as alternative investments, such as non-traded real estate investment trusts, unit trusts, and fixed and variable annuities. The company was founded in 2016 and is headquartered in Albany, New York. Binah Capital Group, Inc. operates as a subsidiary of MHC Securities, LLC.

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.