Hamilton Lane (NASDAQ:HLNE) versus Netcapital (NASDAQ:NCPL) Financial Survey

Netcapital (NASDAQ:NCPL) and Hamilton Lane (NASDAQ:HLNE) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.

Analyst Recommendations

This is a summary of current recommendations and price targets for Netcapital and Hamilton Lane, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Netcapital	1	0	0	0	1.00
Hamilton Lane	0	2	6	1	2.89

Hamilton Lane has a consensus target price of $131.57, suggesting a potential upside of 52.62%. Given Hamilton Lane’s stronger consensus rating and higher probable upside, analysts clearly believe Hamilton Lane is more favorable than Netcapital.

Risk & Volatility

Netcapital has a beta of 2.52, indicating that its share price is 152% more volatile than the S&P 500. Comparatively, Hamilton Lane has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500.

Insider & Institutional Ownership

30.7% of Netcapital shares are held by institutional investors. Comparatively, 97.4% of Hamilton Lane shares are held by institutional investors. 4.9% of Netcapital shares are held by company insiders. Comparatively, 24.0% of Hamilton Lane shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Netcapital and Hamilton Lane”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Netcapital	$870,000.00	12.27	-$28.30 million	($15.49)	-0.09
Hamilton Lane	$858.37 million	5.58	$249.18 million	$6.56	13.14

Hamilton Lane has higher revenue and earnings than Netcapital. Netcapital is trading at a lower price-to-earnings ratio than Hamilton Lane, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Netcapital and Hamilton Lane’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%
Hamilton Lane	32.14%	25.10%	15.75%

Summary

Hamilton Lane beats Netcapital on 13 of the 15 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 Hamilton Lane

Hamilton Lane Incorporated is a private equity firm specializing in early venture, emerging growth, turnaround, middle market, mature, mid-venture, bridge, buyout, distressed/vulture, loan, mezzanine in growth capital companies. It prefers to invest in energy, industrials, consumer discretionary, health care, real estate, information technology, utilities, and consumer services. The firm prefers to invest in Africa/Middle East, Asia/Pacific, Europe, Latin America and Caribbean, United States of America, and Canada. The firm prefers to invest between $1 million and $100 million. It prefers to take majority stake. Hamilton Lane Incorporated was founded in 1991 and is based in Conshohocken, Pennsylvania with additional offices across Europe, North America, Asia Pacific and the Middle East.