Head to Head Comparison: Netcapital (NASDAQ:NCPL) and The9 (NASDAQ:NCTY)

The9 (NASDAQ:NCTY) and Netcapital (NASDAQ:NCPL) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, earnings, analyst recommendations, profitability and risk.

Profitability

This table compares The9 and Netcapital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
The9	N/A	N/A	N/A
Netcapital	-100.71%	-12.80%	-11.48%

Institutional and Insider Ownership

0.5% of The9 shares are owned by institutional investors. Comparatively, 30.7% of Netcapital shares are owned by institutional investors. 30.8% of The9 shares are owned by insiders. Comparatively, 7.8% of Netcapital shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings for The9 and Netcapital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
The9	0	0	0	0	N/A
Netcapital	0	0	0	0	N/A

Volatility and Risk

The9 has a beta of 1.9, meaning that its stock price is 90% more volatile than the S&P 500. Comparatively, Netcapital has a beta of -0.52, meaning that its stock price is 152% less volatile than the S&P 500.

Valuation and Earnings

This table compares The9 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
The9	$179.05 million	0.30	$2.82 million	N/A	N/A
Netcapital	$4.95 million	13.38	$2.95 million	($0.05)	-66.20

Netcapital has lower revenue, but higher earnings than The9.

Summary

The9 beats Netcapital on 6 of the 9 factors compared between the two stocks.

About The9

The9 Limited, together with its subsidiaries, operates as Internet company in the People's Republic of China and internationally. It also involves in the operation of cryptocurrency mining and Non-Fungible Token platform NFTSTAR, a NFT trading and community platform that provides users with purchase, trade, and interactive activities. The company was formerly known as GameNow.net Limited and changed its name to The9 Limited in February 2004. The9 Limited was incorporated in 1999 and is headquartered in Shanghai, the People's Republic of China.

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.