Critical Survey: Capstone (CAPS) versus Its Rivals

Volatility and Risk

Capstone has a beta of -0.83, suggesting that its share price is 183% less volatile than the S&P 500. Comparatively, Capstone’s peers have a beta of 10.21, suggesting that their average share price is 921% more volatile than the S&P 500.

Institutional and Insider Ownership

2.5% of Capstone shares are held by institutional investors. Comparatively, 39.4% of shares of all “Pharmaceutical preparations” companies are held by institutional investors. 59.1% of Capstone shares are held by company insiders. Comparatively, 13.8% of shares of all “Pharmaceutical preparations” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Capstone and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Capstone	$43.38 million	N/A	-1.72
Capstone Competitors	$440.95 million	-$69.10 million	-9.92

Capstone’s peers have higher revenue, but lower earnings than Capstone. Capstone is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Capstone and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Capstone	N/A	N/A	N/A
Capstone Competitors	-2,625.49%	-359.57%	-43.35%

Summary

Capstone beats its peers on 5 of the 8 factors compared.

About Capstone

Capstone Holding Corp., through its subsidiaries, engages in the distribution of masonry stone products in the United States. Its masonry stone products include manufactured and natural stone cladding products, natural stone landscape products and related goods for residential and commercial construction. The company was formerly known as Capstone Therapeutics Corp. and changed its name to Capstone Holding Corp. in February 2022. Capstone Holding Corp. was incorporated in 1987 and is headquartered in Tempe, Arizona. Capstone Holding Corp. operates as a subsidiary of BP Peptides, LLC.