Contrasting Klaviyo (NYSE:KVYO) & i3 Verticals (NASDAQ:IIIV)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Klaviyo	-5.70%	-1.00%	-0.79%
i3 Verticals	7.33%	4.25%	3.44%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Klaviyo	$937.46 million	6.34	-$46.14 million	($0.24)	-81.96
i3 Verticals	$213.16 million	3.26	$17.87 million	$0.62	34.68

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

Volatility & Risk

Klaviyo has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, i3 Verticals has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Klaviyo and i3 Verticals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Klaviyo	1	3	18	2	2.88
i3 Verticals	0	3	4	0	2.57

Klaviyo presently has a consensus target price of $40.29, indicating a potential upside of 104.81%. i3 Verticals has a consensus target price of $33.20, indicating a potential upside of 54.42%. Given Klaviyo’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Klaviyo is more favorable than i3 Verticals.

Institutional and Insider Ownership

45.4% of Klaviyo shares are owned by institutional investors. Comparatively, 84.2% of i3 Verticals shares are owned by institutional investors. 53.2% of Klaviyo shares are owned by company insiders. Comparatively, 60.1% of i3 Verticals shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

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

About Klaviyo

Klaviyo, Inc., a technology company, provides a software-as-a-service platform in the United States, other Americas, the Asia-Pacific, Europe, the Middle East, and Africa. The company offers Klaviyo, a cloud-native platform for data store, segmentation engine, campaigns and flows, and messaging infrastructure. It also provides email to send personalized marketing emails, including drag-and-drop email templates to edit and customize pre-built templates; email campaigns and automations with smart send time features, generative artificial intelligence for subject line creation, A/B testing tools, and consumer list segmentation; short message services to send targeted marketing text messages to consumers, as well as built-in contact cards to ensure that texts does not appear as random numbers; and push, a personalized push notification to engage with consumer. In addition, the company offers other applications, such as reviews, which collect product reviews; and customer data platform that allows to manage, deploy, transform, and sync data. It serves its products to entrepreneurs, small and medium-sized businesses to mid-market businesses, and enterprises. The was incorporated in 2012 and is headquartered in Boston, Massachusetts.

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.