Financial Analysis: i3 Verticals (NASDAQ:IIIV) versus Spindle (OTCMKTS:SPDL)

Spindle (OTCMKTS:SPDL) and i3 Verticals (NASDAQ:IIIV) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.

Profitability

This table compares Spindle and i3 Verticals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Spindle	N/A	N/A	N/A
i3 Verticals	41.85%	3.36%	1.81%

Valuation and Earnings

This table compares Spindle and i3 Verticals”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spindle	N/A	N/A	N/A	N/A	N/A
i3 Verticals	$241.65 million	3.45	$113.34 million	$4.40	5.71

i3 Verticals has higher revenue and earnings than Spindle.

Insider & Institutional Ownership

84.2% of i3 Verticals shares are held by institutional investors. 14.6% of Spindle shares are held by company insiders. Comparatively, 59.1% of i3 Verticals shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for Spindle and i3 Verticals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spindle	0	0	0	0	0.00
i3 Verticals	0	2	4	1	2.86

i3 Verticals has a consensus target price of $29.57, suggesting a potential upside of 17.72%. Given i3 Verticals’ stronger consensus rating and higher possible upside, analysts plainly believe i3 Verticals is more favorable than Spindle.

Summary

i3 Verticals beats Spindle on 10 of the 10 factors compared between the two stocks.

About Spindle

Spindle, Inc. provides payment-processing services to merchants using its Catalyst Gateway. It also acts as an agent, independent contractor, or referral partner to broker merchants that it secures to other merchant processors for ongoing fees based on processing volume. The company serves small and medium-sized businesses. The company is based in Marco Island, Florida.

About i3 Verticals

i3 Verticals, Inc. provides integrated payment and software solutions primarily to the public sector and healthcare markets in the United States. It operates in two segments, Software and Services, and Merchant Services. The company offers payment processing services that enables upper and lower court case management, collections, finance and accounting, motor vehicle and carrier registration, e-filing and taxation, license plate inventory, property tax management, utility billing, professional licensing, document workflow, and law enforcement software; assists public schools in completing payment processing functions, including accepting payments for online or at school lunches, and school activities. It also provides software platforms, such as electronic healthcare records and revenue cycle management solutions; insurance adjudication, patient engagement platforms, billing, scheduling, and integrated payments solutions; and workflow software and associated professional services to medical insurance payers. In addition, the company engages in software licenses and subscriptions, transaction-based fees, ongoing software maintenance and support, and other software-related solutions; and payment processing and gateway fees, as well as other related fixed transaction or service fees. Further, it sells equipment, and offers non-software related professional services. The company offers its solutions to clients through direct sales force; distribution partners comprising independent software vendors, independent sales organizations, and value-added resellers. i3 Verticals, Inc. was founded in 2012 and is headquartered in Nashville, Tennessee.