Netcapital (NASDAQ:NCPL – Get Free Report) and Blue Owl Technology Finance (NYSE:OTF – Get Free Report) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, valuation, dividends, institutional ownership and earnings.
Institutional and Insider Ownership
30.7% of Netcapital shares are held by institutional investors. 4.9% of Netcapital shares are held by company insiders. Comparatively, 0.1% of Blue Owl Technology Finance shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Netcapital and Blue Owl Technology Finance”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Netcapital | $870,000.00 | 14.17 | -$28.30 million | ($15.49) | -0.10 |
| Blue Owl Technology Finance | $1.15 billion | 3.89 | $720.37 million | $0.80 | 12.17 |
Blue Owl Technology Finance has higher revenue and earnings than Netcapital. Netcapital is trading at a lower price-to-earnings ratio than Blue Owl Technology Finance, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Netcapital has a beta of 2.35, suggesting that its share price is 135% more volatile than the S&P 500. Comparatively, Blue Owl Technology Finance has a beta of -0.58, suggesting that its share price is 158% less volatile than the S&P 500.
Profitability
This table compares Netcapital and Blue Owl Technology Finance’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% |
| Blue Owl Technology Finance | 28.69% | 7.17% | 3.86% |
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Netcapital and Blue Owl Technology Finance, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Netcapital | 1 | 0 | 0 | 0 | 1.00 |
| Blue Owl Technology Finance | 0 | 3 | 4 | 0 | 2.57 |
Blue Owl Technology Finance has a consensus target price of $13.60, indicating a potential upside of 39.70%. Given Blue Owl Technology Finance’s stronger consensus rating and higher possible upside, analysts clearly believe Blue Owl Technology Finance is more favorable than Netcapital.
Summary
Blue Owl Technology Finance beats Netcapital on 9 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 Blue Owl Technology Finance
Blue Owl Technology Finance Corp. is a specialty finance company focused on making debt and equity investments to U.S. technology-related companies, with a strategic focus on software. Blue Owl Technology Finance Corp. is based in NEW YORK.
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