Daily Journal Corp. (S.C.) (NASDAQ:DJCO – Get Free Report) and i3 Verticals (NASDAQ:IIIV – Get Free Report) are both small-cap technology companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, valuation and earnings.
Insider & Institutional Ownership
51.2% of Daily Journal Corp. (S.C.) shares are owned by institutional investors. Comparatively, 84.2% of i3 Verticals shares are owned by institutional investors. 0.1% of Daily Journal Corp. (S.C.) 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 will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings and target prices for Daily Journal Corp. (S.C.) and i3 Verticals, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Daily Journal Corp. (S.C.) | 0 | 1 | 0 | 0 | 2.00 |
| i3 Verticals | 0 | 4 | 3 | 0 | 2.43 |
Volatility and Risk
Daily Journal Corp. (S.C.) has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, i3 Verticals has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.
Profitability
This table compares Daily Journal Corp. (S.C.) and i3 Verticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Daily Journal Corp. (S.C.) | 14.83% | 3.79% | 2.72% |
| i3 Verticals | 4.24% | 4.30% | 3.31% |
Valuation and Earnings
This table compares Daily Journal Corp. (S.C.) and i3 Verticals”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Daily Journal Corp. (S.C.) | $87.70 million | 8.83 | $112.14 million | $10.15 | 55.30 |
| i3 Verticals | $213.16 million | 2.20 | $17.87 million | $0.38 | 44.21 |
Daily Journal Corp. (S.C.) has higher earnings, but lower revenue than i3 Verticals. i3 Verticals is trading at a lower price-to-earnings ratio than Daily Journal Corp. (S.C.), indicating that it is currently the more affordable of the two stocks.
Summary
i3 Verticals beats Daily Journal Corp. (S.C.) on 8 of the 14 factors compared between the two stocks.
About Daily Journal Corp. (S.C.)
Daily Journal Corporation operates in publishing of newspapers and websites covering in California, Arizona, Utah, and Australia. It operates in two segments, Traditional Business and Journal Technologies. The company publishes 10 newspapers of general circulation, including Los Angeles Daily Journal, San Francisco Daily Journal, Daily Commerce, The Daily Recorder, The Inter-City Express, San Jose Post-Record, Orange County Reporter, Business Journal, The Daily Transcript, and The Record Reporter. It also provides specialized information services; and serves as an advertising and newspaper representative for commercial and public notice advertising. In addition, the company offers case management software systems and related products, including eCourt, eProsecutor, eDefender, and eProbation, which are browser-based case processing systems; eFile, a browser-based interface that allows attorneys and the public to electronically file documents with the court; and ePayIt, a service primarily for the online payment of traffic citations. It provides its software systems and related products to courts; prosecutor and public defender offices; probation departments; and other justice agencies, including administrative law organizations, city and county governments, and bar associations to manage cases and information electronically, to interface with other justice partners, and to extend electronic services to bar members and the public in 30 states and internationally. Daily Journal Corporation was incorporated in 1987 and is based in Los Angeles, California.
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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