i3 Verticals (NASDAQ:IIIV – Get Free Report) and Similarweb (NYSE:SMWB – Get Free Report) are both small-cap technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.
Profitability
This table compares i3 Verticals and Similarweb’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| i3 Verticals | 4.24% | 4.49% | 3.31% |
| Similarweb | -7.37% | -19.81% | -1.74% |
Risk & Volatility
i3 Verticals has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500. Comparatively, Similarweb has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500.
Insider and Institutional Ownership
84.2% of i3 Verticals shares are owned by institutional investors. Comparatively, 57.6% of Similarweb shares are owned by institutional investors. 60.1% of i3 Verticals shares are owned by insiders. Comparatively, 62.4% of Similarweb shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares i3 Verticals and Similarweb”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| i3 Verticals | $213.16 million | 2.42 | $17.87 million | $0.38 | 51.55 |
| Similarweb | $295.61 million | 2.39 | -$32.94 million | ($0.25) | -32.31 |
i3 Verticals has higher earnings, but lower revenue than Similarweb. Similarweb is trading at a lower price-to-earnings ratio than i3 Verticals, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations and price targets for i3 Verticals and Similarweb, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| i3 Verticals | 1 | 2 | 3 | 0 | 2.33 |
| Similarweb | 1 | 5 | 5 | 0 | 2.36 |
i3 Verticals currently has a consensus price target of $25.40, suggesting a potential upside of 29.66%. Similarweb has a consensus price target of $9.71, suggesting a potential upside of 20.26%. Given i3 Verticals’ higher probable upside, analysts clearly believe i3 Verticals is more favorable than Similarweb.
Summary
i3 Verticals beats Similarweb on 9 of the 14 factors compared between the two stocks.
About i3 Verticals
i3 Verticals is a software company that develops technology for specialized markets, with a focus on public-sector organizations. Its products support functions such as utility billing, court and government operations, and payment collection. The company has also served customers in education and other markets, offering software designed to manage sector-specific administrative and operational needs. Its solutions can include integrated payment capabilities that help organizations process transactions through their software systems.
About Similarweb
Similarweb Ltd. is a digital intelligence company that helps businesses understand online activity and competition. Its platform collects and analyzes data about website visits, mobile app usage, search behavior and other digital interactions, then presents the information through analytics and benchmarking tools. Similarweb’s products support market research, competitive analysis, digital marketing, sales prospecting and investment research. Customers can use the platform to assess digital audiences and trends, compare performance with competitors, and identify opportunities across online markets.
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