Aware (NASDAQ:AWRE – Get Free Report) and i3 Verticals (NASDAQ:IIIV – Get Free Report) are both small-cap technology companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.
Institutional and Insider Ownership
24.4% of Aware shares are owned by institutional investors. Comparatively, 84.2% of i3 Verticals shares are owned by institutional investors. 34.3% of Aware 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 large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
Aware has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, i3 Verticals has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Aware | $17.29 million | 1.21 | -$5.87 million | ($0.40) | -2.41 |
| i3 Verticals | $213.16 million | 1.98 | $17.87 million | $0.38 | 42.18 |
i3 Verticals has higher revenue and earnings than Aware. Aware is trading at a lower price-to-earnings ratio than i3 Verticals, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Aware and i3 Verticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Aware | -51.92% | -35.21% | -24.33% |
| i3 Verticals | 4.24% | 4.49% | 3.31% |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Aware and i3 Verticals, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Aware | 1 | 0 | 0 | 0 | 1.00 |
| i3 Verticals | 1 | 3 | 3 | 0 | 2.29 |
i3 Verticals has a consensus target price of $25.40, indicating a potential upside of 58.45%. Given i3 Verticals’ stronger consensus rating and higher possible upside, analysts plainly believe i3 Verticals is more favorable than Aware.
Summary
i3 Verticals beats Aware on 13 of the 14 factors compared between the two stocks.
About Aware
Aware, Inc., an authentication company, provides biometrics software products and solutions for government agencies and commercial entities in the United States, the United Kingdom, and internationally. The company offers biometric software solution, including Knomi, a mobile biometric framework which provides multiple biometric modality options; AwareABIS, an automated biometric identification system used for large-scale biometric identification and deduplication; AFIX suite used for small-scale law enforcement focused biometric identification; and AFIX Tracker for fingerprint, palmprint, and latent print identification, as well as AFIX Face, AFIX Verifier, AFIX Identifier, AFIX Comparator, AFIX Engine, and AFIX NIST Transaction Engine. It also provides BioSP, a biometric integration platform-as-a-service that enables biometric data processing and management functionality in a web services architecture; WebEnroll, a browser-based biometric enrollment and data management solution; and AwareID, a software-as-a-service that provides identity verification and continuous authentication capabilities. In addition, the company offers biometrics applications, such as Nexa line, a biometric search and match SDKs including Nexa Fingerprint, Nexa Face, Nexa Iris, and Nexa Voice; and AwareXM, an interoperable fingerprint matching SDK that provides fingerprint minutiae extraction, template generation, and fingerprint authentication. Further, it sells imaging products used in medical and advanced imaging application; and offers software maintenance, program management, and software engineering services. The company sells its products, services, and solutions through systems integrators, direct, and original equipment manufacturers and value added resellers channel. Aware, Inc. was incorporated in 1986 and is headquartered in Burlington, 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.
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