Vertex (NASDAQ:VERX – Get Free Report) and i3 Verticals (NASDAQ:IIIV – Get Free Report) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.
Institutional and Insider Ownership
70.3% of Vertex shares are owned by institutional investors. Comparatively, 84.2% of i3 Verticals shares are owned by institutional investors. 43.3% of Vertex shares are owned by insiders. Comparatively, 60.1% of i3 Verticals shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Vertex and i3 Verticals, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vertex | 1 | 7 | 7 | 0 | 2.40 |
| i3 Verticals | 1 | 2 | 4 | 0 | 2.43 |
Profitability
This table compares Vertex and i3 Verticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vertex | 0.96% | 24.70% | 4.95% |
| i3 Verticals | 7.33% | 4.32% | 3.49% |
Earnings & Valuation
This table compares Vertex and i3 Verticals”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vertex | $748.44 million | 3.25 | $7.21 million | $0.04 | 381.25 |
| i3 Verticals | $213.16 million | 3.36 | $17.87 million | $0.62 | 37.92 |
i3 Verticals has lower revenue, but higher earnings than Vertex. i3 Verticals is trading at a lower price-to-earnings ratio than Vertex, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Vertex has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500. Comparatively, i3 Verticals has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.
Summary
i3 Verticals beats Vertex on 8 of the 14 factors compared between the two stocks.
About Vertex
Vertex, Inc., together with its subsidiaries, provides enterprise tax technology solutions for retail trade, wholesale trade, and manufacturing industries in the United States and internationally. The company offers tax determination; compliance and reporting, including workflow management tools, role-based security, and event logging; tax data management; document management; analytics and insights; pre-built integration that includes mapping data fields, and business logic and configurations; industry-specific solutions; and technology specific solutions, such as chain flow accelerator and SAP-specific tools. It provides implementation services, such as configuration, data migration and implementation, and support and training; and managed services, including tax return preparation, filing and tax payment, and notice management. The company sells its software products through software licenses and software as a service subscription. Vertex, Inc. was founded in 1978 and is headquartered in King of Prussia, Pennsylvania.
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.
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