Head to Head Survey: Netcapital (NASDAQ:NCPL) and Investcorp Credit Management BDC (NASDAQ:ICMB)

Netcapital (NASDAQ:NCPL) and Investcorp Credit Management BDC (NASDAQ:ICMB) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.

Earnings and Valuation

This table compares Netcapital and Investcorp Credit Management BDC”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	4.06	-$28.30 million	($15.49)	-0.03
Investcorp Credit Management BDC	$17.40 million	0.72	-$8.85 million	($1.42)	-0.61

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

Volatility & Risk

Netcapital has a beta of 2.52, indicating that its share price is 152% more volatile than the S&P 500. Comparatively, Investcorp Credit Management BDC has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500.

Profitability

This table compares Netcapital and Investcorp Credit Management BDC’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%
Investcorp Credit Management BDC	-134.21%	0.86%	0.28%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Netcapital and Investcorp Credit Management BDC, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Netcapital	1	0	0	0	1.00
Investcorp Credit Management BDC	1	0	0	0	1.00

Institutional & Insider Ownership

30.7% of Netcapital shares are held by institutional investors. Comparatively, 7.8% of Investcorp Credit Management BDC shares are held by institutional investors. 4.9% of Netcapital shares are held by insiders. Comparatively, 1.3% of Investcorp Credit Management BDC shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Investcorp Credit Management BDC beats Netcapital on 6 of the 11 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 Investcorp Credit Management BDC

Investcorp Credit Management BDC, Inc. is a business development company specializing in loan, mezzanine, middle market, growth capital, acquisitions, market/product expansion, organic growth, refinancings and recapitalization investments. It also selectively invests in mezzanine loans/structured equity and in the equity of portfolio companies through warrants and other instruments, in most cases taking such upside participation interests as part of a broader investment relationship. The fund typically invests in United States and Europe. Within United States, the fund seeks to invest in Midatlantic, Midwest, Northeast, Southeast, and West Coast regions. The fund primarily invests in cable and satellites; consumer services; healthcare equipment and services; industrials; information technology; telecommunication services; and utilities sectors. The fund seeks to invest between $5 million to $25 million in companies that have annual revenues of at least $50 million with EBITDA at least $15 million.