Critical Survey: Netcapital (NASDAQ:NCPL) and Cosmos Group (OTCMKTS:COSG)

Institutional & Insider Ownership

30.7% of Netcapital shares are owned by institutional investors. 6.8% of Netcapital shares are owned by company insiders. Comparatively, 0.4% of Cosmos Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Netcapital has a beta of -0.43, indicating that its share price is 143% less volatile than the S&P 500. Comparatively, Cosmos Group has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500.

Valuation and Earnings

This table compares Netcapital and Cosmos Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Netcapital	$4.95 million	0.90	-$4.99 million	($31.92)	-0.08
Cosmos Group	$620,000.00	0.74	-$77.34 million	N/A	N/A

Netcapital has higher revenue and earnings than Cosmos Group.

Profitability

This table compares Netcapital and Cosmos Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Netcapital	-562.71%	-25.03%	-22.67%
Cosmos Group	N/A	N/A	-78.39%

Summary

Netcapital beats Cosmos Group on 6 of the 9 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 Cosmos Group

Cosmos Group Holdings Inc. focuses on the physical artworks and collectibles business in Hong Kong and internationally. It operates online platform to sell and distribute the arts and collectibles to end-users with the use of blockchain technologies and minting tokens. The company is based in Singapore.