Netcapital (NASDAQ:NCPL) & American Express (NYSE:AXP) Head to Head Survey

American Express (NYSE:AXP) and Netcapital (NASDAQ:NCPL) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.

Profitability

This table compares American Express and Netcapital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Express	15.53%	32.94%	3.56%
Netcapital	-196.48%	-18.14%	-16.35%

Analyst Ratings

This is a breakdown of current ratings and price targets for American Express and Netcapital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Express	3	13	10	0	2.27
Netcapital	0	0	0	0	N/A

American Express presently has a consensus price target of $230.78, suggesting a potential downside of 14.86%. Given American Express’ higher possible upside, analysts clearly believe American Express is more favorable than Netcapital.

Earnings & Valuation

This table compares American Express and Netcapital”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Express	$63.16 billion	3.09	$8.37 billion	$12.14	22.33
Netcapital	$3.57 million	9.01	-$4.99 million	($0.05)	-32.20

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

Volatility and Risk

American Express has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, Netcapital has a beta of -0.56, indicating that its stock price is 156% less volatile than the S&P 500.

Institutional and Insider Ownership

84.3% of American Express shares are owned by institutional investors. Comparatively, 30.7% of Netcapital shares are owned by institutional investors. 0.1% of American Express shares are owned by company insiders. Comparatively, 7.8% of Netcapital shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

American Express beats Netcapital on 11 of the 13 factors compared between the two stocks.

About American Express

American Express Company, together with its subsidiaries, operates as integrated payments company in the United States, Europe, the Middle East and Africa, the Asia Pacific, Australia, New Zealand, Latin America, Canada, the Caribbean, and Internationally. It operates through four segments: U.S. Consumer Services, Commercial Services, International Card Services, and Global Merchant and Network Services. The company's products and services include credit card, charge card, banking, and other payment and financing products; network services; expense management products and services; and travel and lifestyle services. It also provides merchant acquisition and processing, servicing and settlement, point-of-sale marketing, and information products and services for merchants; and fraud prevention services, as well as the design and operation of customer loyalty programs. In addition, the company operates lounges at airports under Centurion Lounge brand name. It sells its products and services to consumers, small businesses, mid-sized companies, and large corporations through mobile and online applications, affiliate marketing, customer referral programs, third-party service providers and business partners, direct mail, telephone, in-house sales teams, and direct response advertising. American Express Company was founded in 1850 and is headquartered in New York, New York.

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.