Netcapital (NASDAQ:NCPL – Get Free Report) and Gogoro (NASDAQ:GGR – Get Free Report) are both small-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.
Volatility and Risk
Netcapital has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, Gogoro has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500.
Profitability
This table compares Netcapital and Gogoro’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Netcapital | -3,204.47% | -34.42% | -28.97% |
| Gogoro | -47.07% | -80.94% | -17.80% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Netcapital | 1 | 0 | 0 | 0 | 1.00 |
| Gogoro | 1 | 0 | 0 | 0 | 1.00 |
Earnings and Valuation
This table compares Netcapital and Gogoro”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Netcapital | $917,291.00 | 7.51 | -$28.30 million | ($18.64) | -0.08 |
| Gogoro | $310.52 million | 0.18 | -$122.75 million | ($9.01) | -0.43 |
Netcapital has higher earnings, but lower revenue than Gogoro. Gogoro is trading at a lower price-to-earnings ratio than Netcapital, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
30.7% of Netcapital shares are owned by institutional investors. Comparatively, 15.9% of Gogoro shares are owned by institutional investors. 4.9% of Netcapital shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Netcapital beats Gogoro on 6 of the 10 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 Gogoro
Gogoro Inc. provides battery swapping services in Taiwan, India, and internationally. It also develops Swap and Go battery system that delivers full power to electric-powered two-wheelers. In addition, the company offers battery swapping technology in the form of hardware, software, and service, including Gogoro Smart Batteries, GoStation, Gogoro Network Software & Battery Management Systems, Smartscooter, GoReward, and related components and kits. The company was incorporated in 2011 and is based in Taipei, Taiwan.
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