Shopify (NASDAQ:SHOP) and Information Analysis (OTCMKTS:IAIC) Critical Survey

Information Analysis (OTCMKTS:IAIC) and Shopify (NASDAQ:SHOP) are both computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Volatility and Risk

Information Analysis has a beta of 3.25, meaning that its share price is 225% more volatile than the S&P 500. Comparatively, Shopify has a beta of 2.83, meaning that its share price is 183% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Information Analysis and Shopify, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Information Analysis	0	0	0	0	0.00
Shopify	0	20	24	0	2.55

Shopify has a consensus target price of $171.61, indicating a potential upside of 23.92%. Given Shopify’s stronger consensus rating and higher probable upside, analysts clearly believe Shopify is more favorable than Information Analysis.

Valuation & Earnings

This table compares Information Analysis and Shopify”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Information Analysis	$13.90 million	0.00	$410,000.00	$0.04	N/A
Shopify	$8.88 billion	20.30	$2.02 billion	$1.35	102.59

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

Profitability

This table compares Information Analysis and Shopify’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Information Analysis	3.72%	18.48%	9.33%
Shopify	16.65%	11.72%	9.73%

Institutional & Insider Ownership

69.3% of Shopify shares are owned by institutional investors. 23.8% of Information Analysis shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Shopify beats Information Analysis on 9 of the 13 factors compared between the two stocks.

About Information Analysis

Information Analysis, Inc. provides information technology services. The firm engages in the business of modernizing client information systems, developing and maintaining information technology systems, and performing consulting services to government and commercial organizations. It specializes in legacy systems modernization, ebusiness solutions, enterprise portals, system migration and re-hosting services, and enterprise application integration. The company was founded by Sandor Rosenberg in 1979 and is headquartered in Fairfax, VA.

About Shopify

Shopify Inc., a commerce company, provides a commerce platform and services in Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, Australia, China, and Latin America. The company’s platform enables merchants to displays, manages, markets, and sells its products through various sales channels, including web and mobile storefronts, physical retail locations, pop-up shops, social media storefronts, native mobile apps, buy buttons, and marketplaces; and enables to manage products and inventory, process orders and payments, fulfill and ship orders, new buyers and build customer relationships, source products, leverage analytics and reporting, manage cash, payments and transactions, and access financing. It also sells custom themes and apps, and registration of domain names; and merchant solutions, which include accepting payments, shipping, and securing working capital. The company was formerly known as Jaded Pixel Technologies Inc. and changed its name to Shopify Inc. in November 2011. Shopify Inc. was incorporated in 2004 and is headquartered in Ottawa, Canada.