i3 Verticals (NASDAQ:IIIV) and Envestnet (NYSE:ENV) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.
Valuation and Earnings
This table compares i3 Verticals and Envestnet's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
i3 Verticals | $150.13 million | 7.22 | $-420,000.00 | $0.51 | 66.20 |
Envestnet | $900.13 million | 4.55 | $-16,780,000.00 | $1.21 | 62.16 |
i3 Verticals has higher earnings, but lower revenue than Envestnet. Envestnet is trading at a lower price-to-earnings ratio than i3 Verticals, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
61.1% of i3 Verticals shares are held by institutional investors. 40.1% of i3 Verticals shares are held by insiders. Comparatively, 2.4% of Envestnet shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent recommendations for i3 Verticals and Envestnet, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
i3 Verticals | 1 | 0 | 6 | 1 | 2.88 |
Envestnet | 0 | 3 | 7 | 1 | 2.82 |
i3 Verticals currently has a consensus target price of $37.25, suggesting a potential upside of 10.34%. Envestnet has a consensus target price of $87.20, suggesting a potential upside of 15.94%. Given Envestnet's higher probable upside, analysts clearly believe Envestnet is more favorable than i3 Verticals.
Volatility and Risk
i3 Verticals has a beta of 1.62, indicating that its share price is 62% more volatile than the S&P 500. Comparatively, Envestnet has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500.
Profitability
This table compares i3 Verticals and Envestnet's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
i3 Verticals | -0.28% | 10.30% | 5.09% |
Envestnet | -0.69% | 10.44% | 4.91% |
Summary
i3 Verticals beats Envestnet on 8 of the 14 factors compared between the two stocks.