TOP Financial Group (NASDAQ:TOP – Get Free Report) and Netcapital (NASDAQ:NCPL – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, profitability, institutional ownership and valuation.
Analyst Ratings
This is a breakdown of recent recommendations for TOP Financial Group and Netcapital, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TOP Financial Group | 1 | 0 | 0 | 0 | 1.00 |
| Netcapital | 1 | 0 | 0 | 0 | 1.00 |
Volatility and Risk
TOP Financial Group has a beta of -0.82, meaning that its share price is 182% less volatile than the S&P 500. Comparatively, Netcapital has a beta of 2.25, meaning that its share price is 125% more volatile than the S&P 500.
Valuation and Earnings
This table compares TOP Financial Group and Netcapital”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TOP Financial Group | $4.72 million | 416.52 | -$1.17 million | ($0.02) | -807.65 |
| Netcapital | $870,000.00 | 15.25 | -$28.30 million | ($15.49) | -0.11 |
TOP Financial Group has higher revenue and earnings than Netcapital. TOP Financial Group is trading at a lower price-to-earnings ratio than Netcapital, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares TOP Financial Group and Netcapital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TOP Financial Group | N/A | N/A | N/A |
| Netcapital | N/A | N/A | N/A |
Insider & Institutional Ownership
0.3% of TOP Financial Group shares are held by institutional investors. Comparatively, 30.7% of Netcapital shares are held by institutional investors. 85.6% of TOP Financial Group shares are held by company insiders. Comparatively, 4.9% of Netcapital shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
TOP Financial Group beats Netcapital on 5 of the 8 factors compared between the two stocks.
About TOP Financial Group
TOP Financial Group Limited is a financial services holding company that provides online brokerage services through its subsidiaries. Its offerings include securities brokerage and futures brokerage, serving individual and institutional clients. The company’s operations are based in Hong Kong, where its subsidiaries are licensed to provide financial services. Its trading services cover securities and futures markets, including markets in Hong Kong and the United States. Previously known as Zhong Yang Financial Group Limited, the company adopted the TOP Financial Group name in 2022.
About Netcapital
Netcapital, Inc. (NASDAQ: NCPL) is a financial technology company that operates a digital private-capital platform. Its platform is designed to connect early-stage and emerging companies seeking funding with investors interested in participating in private-market opportunities. Through its subsidiaries and related businesses, Netcapital provides online tools and services intended to support capital raising, investor access and engagement, and the administration of private offerings. The company also works with portfolio companies by providing strategic guidance, technology resources and other support intended to help them develop their businesses.
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