Netcapital (NASDAQ:NCPL) versus Carlyle Secured Lending (NASDAQ:CGBD) Head-To-Head Contrast

Carlyle Secured Lending (NASDAQ:CGBD) and Netcapital (NASDAQ:NCPL) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Carlyle Secured Lending and Netcapital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carlyle Secured Lending	14.26%	8.85%	3.90%
Netcapital	-3,806.77%	-40.53%	-32.59%

Earnings & Valuation

This table compares Carlyle Secured Lending 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
Carlyle Secured Lending	$48.70 million	14.44	$69.97 million	$0.51	20.04
Netcapital	$870,000.00	12.00	-$28.30 million	($15.49)	-0.09

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

Analyst Ratings

This is a summary of current ratings and target prices for Carlyle Secured Lending and Netcapital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carlyle Secured Lending	0	4	1	1	2.50
Netcapital	1	0	0	0	1.00

Carlyle Secured Lending presently has a consensus price target of $11.25, indicating a potential upside of 10.08%. Given Carlyle Secured Lending’s stronger consensus rating and higher probable upside, research analysts clearly believe Carlyle Secured Lending is more favorable than Netcapital.

Volatility and Risk

Carlyle Secured Lending has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500. Comparatively, Netcapital has a beta of 2.35, suggesting that its stock price is 135% more volatile than the S&P 500.

Insider and Institutional Ownership

24.5% of Carlyle Secured Lending shares are owned by institutional investors. Comparatively, 30.7% of Netcapital shares are owned by institutional investors. 0.4% of Carlyle Secured Lending shares are owned by company insiders. Comparatively, 4.9% of Netcapital shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Carlyle Secured Lending beats Netcapital on 12 of the 15 factors compared between the two stocks.

About Carlyle Secured Lending

Carlyle Secured Lending, Inc. is business development company specializing in first lien debt, senior secured loans, second lien senior secured loan unsecured debt, mezzanine debt and investments in equities. It specializes in directly investing. It specializes in middle market. It targets healthcare and pharmaceutical, aerospace and defense, high tech industries, business services, software, beverage food and tobacco, hotel gamming and leisure, banking finance insurance and in real estate sector. The fund seeks to invest across United States of America, Luxembourg, Cayman Islands, Cyprus, and United Kingdom. It invests in companies with EBITDA between $25 million and $100 million.

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.