Iris Energy (NASDAQ:IREN) and Netcapital (NASDAQ:NCPL) Critical Survey

Iris Energy (NASDAQ:IREN) and Netcapital (NASDAQ:NCPL) are both small-cap oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, valuation, earnings, risk, analyst recommendations and profitability.

Profitability

This table compares Iris Energy and Netcapital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Iris Energy	N/A	N/A	N/A
Netcapital	-196.48%	-18.14%	-16.35%

Volatility & Risk

Iris Energy has a beta of 3.41, indicating that its share price is 241% more volatile than the S&P 500. Comparatively, Netcapital has a beta of -0.6, indicating that its share price is 160% less volatile than the S&P 500.

Institutional & Insider Ownership

41.1% of Iris Energy shares are owned by institutional investors. Comparatively, 30.7% of Netcapital shares are owned by institutional investors. 21.5% of Iris Energy shares are owned by insiders. Comparatively, 7.8% of Netcapital shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Iris Energy and Netcapital, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iris Energy	0	1	9	0	2.90
Netcapital	0	0	0	0	N/A

Iris Energy currently has a consensus price target of $15.44, suggesting a potential upside of 98.01%. Given Iris Energy’s higher probable upside, analysts plainly believe Iris Energy is more favorable than Netcapital.

Earnings & Valuation

This table compares Iris Energy and Netcapital”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iris Energy	$188.76 million	6.06	-$28.95 million	N/A	N/A
Netcapital	$3.57 million	8.45	-$4.99 million	($0.05)	-30.20

Netcapital has lower revenue, but higher earnings than Iris Energy.

Summary

Iris Energy beats Netcapital on 9 of the 11 factors compared between the two stocks.

About Iris Energy

Iris Energy Limited owns and operates bitcoin mining data centers. The company was incorporated in 2018 and is headquartered in Sydney, Australia.

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.