TeraWulf (NASDAQ:WULF – Get Free Report) and Netcapital (NASDAQ:NCPL – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.
Profitability
This table compares TeraWulf and Netcapital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TeraWulf | -41.88% | -15.91% | -11.67% |
| Netcapital | -196.48% | -18.14% | -16.35% |
Analyst Recommendations
This is a breakdown of recent ratings and price targets for TeraWulf and Netcapital, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TeraWulf | 0 | 0 | 7 | 1 | 3.13 |
| Netcapital | 0 | 0 | 0 | 0 | 0.00 |
Volatility & Risk
TeraWulf has a beta of 2.54, meaning that its share price is 154% more volatile than the S&P 500. Comparatively, Netcapital has a beta of -0.32, meaning that its share price is 132% less volatile than the S&P 500.
Insider and Institutional Ownership
62.5% of TeraWulf shares are held by institutional investors. Comparatively, 30.7% of Netcapital shares are held by institutional investors. 24.9% of TeraWulf shares are held by company insiders. Comparatively, 6.8% of Netcapital shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares TeraWulf 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 | |
| TeraWulf | $126.47 million | 17.27 | -$73.42 million | N/A | N/A |
| Netcapital | $1.70 million | 2.25 | -$4.99 million | ($31.92) | -0.07 |
Netcapital has lower revenue, but higher earnings than TeraWulf.
Summary
TeraWulf beats Netcapital on 12 of the 13 factors compared between the two stocks.
About TeraWulf
TeraWulf Inc., together with its subsidiaries, operates as a digital asset technology company in the United States. The company develops, owns, and operates bitcoin mining facilities in New York and Pennsylvania. It is also involved in the provision of miner hosting services to third-party entities. The company was founded in 2021 and is headquartered in Easton, Maryland.
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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