Comparing ATIF (NASDAQ:ZBAI) and Information Services Group (NASDAQ:III)

ATIF (NASDAQ:ZBAI) and Information Services Group (NASDAQ:III) are both small-cap business services companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, dividends, profitability, risk and valuation.

Valuation and Earnings

This table compares ATIF and Information Services Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ATIF	$620,000.00	16.32	-$3.19 million	($7.19)	-1.47
Information Services Group	$240.20 million	1.12	$2.84 million	$0.15	37.20

Information Services Group has higher revenue and earnings than ATIF. ATIF is trading at a lower price-to-earnings ratio than Information Services Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares ATIF and Information Services Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ATIF	N/A	-90.49%	-79.46%
Information Services Group	3.27%	6.87%	3.14%

Risk and Volatility

ATIF has a beta of -0.64, suggesting that its stock price is 164% less volatile than the S&P 500. Comparatively, Information Services Group has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500.

Institutional & Insider Ownership

73.1% of Information Services Group shares are held by institutional investors. 32.2% of ATIF shares are held by insiders. Comparatively, 15.9% of Information Services Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for ATIF and Information Services Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ATIF	1	0	0	0	1.00
Information Services Group	0	2	1	1	2.75

Information Services Group has a consensus target price of $5.50, indicating a potential downside of 1.43%. Given Information Services Group’s stronger consensus rating and higher possible upside, analysts clearly believe Information Services Group is more favorable than ATIF.

Summary

Information Services Group beats ATIF on 13 of the 15 factors compared between the two stocks.

About ATIF

ATIF Holdings Ltd. engages in the provision of financial consulting services. It is also involved in merger and acquisition business advisory, post-listing compliance, management support, and related services. The company was founded on January 5, 2015 and is headquartered in Lake Forest, CA.

About Information Services Group

Information Services Group, Inc., together with its subsidiaries, operates as a technology research and advisory company in the Americas, Europe, and the Asia Pacific. The company offers digital transformation services, including automation, cloud, and data analytics; sourcing advisory; managed governance and risk; network carrier; technology strategy and operations design; change management; and market intelligence and technology research and analysis services. It supports private and public sector organizations to transform and optimize their operational environments. The company also provides ISG Digital, a client solution platform that helps clients developing technology, transformation, sourcing, and digital solutions; and ISG Enterprise, a client solution platform that helps clients manage change and optimize operations in areas comprising finance, human resource, and Procure2Pay. In addition, it offers ISG GovernX to automate the management of third-party supplier relationships that comprise contract and project lifecycles, and risk management; ISG Generative AI; ISG Network Select to streamline and simplify how enterprises build their network solutions; HR technology and transformations; providers-as-a-business services; ISG Digital Engineering; ISG Research; and training-as-a-service. The company serves private sector clients operating in the manufacturing, banking and financial services, insurance, health sciences, energy and utilities, and consumer services industries; and public sector clients, including state and local governments, airport and transit authorities, and national and provincial government units. Information Services Group, Inc. was founded in 2006 and is based in Stamford, Connecticut.