Netcapital (NASDAQ:NCPL) & TeraWulf (NASDAQ:WULF) Critical Analysis

Netcapital (NASDAQ:NCPL) and TeraWulf (NASDAQ:WULF) are both business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, valuation, analyst recommendations, profitability and earnings.

Volatility and Risk

Netcapital has a beta of -0.46, suggesting that its stock price is 146% less volatile than the S&P 500. Comparatively, TeraWulf has a beta of 2.61, suggesting that its stock price is 161% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Netcapital	-196.48%	-18.14%	-16.35%
TeraWulf	-41.88%	-15.91%	-11.67%

Earnings and Valuation

This table compares Netcapital and TeraWulf”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Netcapital	$1.70 million	2.34	-$4.99 million	($31.92)	-0.07
TeraWulf	$126.47 million	18.71	-$73.42 million	N/A	N/A

Netcapital has higher earnings, but lower revenue than TeraWulf.

Insider & Institutional Ownership

30.7% of Netcapital shares are held by institutional investors. Comparatively, 62.5% of TeraWulf shares are held by institutional investors. 6.8% of Netcapital shares are held by company insiders. Comparatively, 24.9% of TeraWulf shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Netcapital and TeraWulf, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Netcapital	0	0	0	0	0.00
TeraWulf	0	0	7	2	3.22

TeraWulf has a consensus target price of $8.64, suggesting a potential upside of 40.99%. Given TeraWulf’s stronger consensus rating and higher possible upside, analysts plainly believe TeraWulf is more favorable than Netcapital.

Summary

TeraWulf beats Netcapital on 12 of the 13 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 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.