i3 Verticals (NASDAQ:IIIV) & CBIZ (NYSE:CBZ) Critical Comparison

i3 Verticals (NASDAQ:IIIV) and CBIZ (NYSE:CBZ) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
i3 Verticals	41.85%	3.36%	1.81%
CBIZ	7.08%	15.12%	6.16%

Analyst Ratings

This is a summary of current ratings and target prices for i3 Verticals and CBIZ, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
i3 Verticals	0	2	4	1	2.86
CBIZ	0	0	2	0	3.00

i3 Verticals currently has a consensus price target of $29.57, indicating a potential upside of 18.33%. CBIZ has a consensus price target of $86.00, indicating a potential upside of 19.43%. Given CBIZ’s stronger consensus rating and higher possible upside, analysts clearly believe CBIZ is more favorable than i3 Verticals.

Institutional & Insider Ownership

84.2% of i3 Verticals shares are held by institutional investors. Comparatively, 87.4% of CBIZ shares are held by institutional investors. 59.1% of i3 Verticals shares are held by insiders. Comparatively, 5.0% of CBIZ shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

i3 Verticals has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500. Comparatively, CBIZ has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.

Valuation & Earnings

This table compares i3 Verticals and CBIZ”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
i3 Verticals	$241.65 million	3.44	$113.34 million	$4.40	5.68
CBIZ	$2.16 billion	1.82	$120.97 million	$1.47	48.99

CBIZ has higher revenue and earnings than i3 Verticals. i3 Verticals is trading at a lower price-to-earnings ratio than CBIZ, indicating that it is currently the more affordable of the two stocks.

Summary

CBIZ beats i3 Verticals on 8 of the 15 factors compared between the two stocks.

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.

About CBIZ

CBIZ, Inc. provides financial, insurance, and advisory services in the United States and Canada. It operates through Financial Services, Benefits and Insurance Services, and National Practices segments. The Financial Services segment offers accounting and tax, financial advisory, valuation, risk and advisory, and government healthcare consulting services. The Benefits and Insurance Services provides employee benefits consulting, payroll/human capital management, property and casualty insurance, and retirement and investment services. The National Practices segment offers information technology managed networking and hardware, and health care consulting services. The company primarily serves small and medium-sized businesses, as well as individuals, governmental entities, and not-for-profit enterprises. CBIZ, Inc. was incorporated in 1987 and is headquartered in Independence, Ohio.