Reviewing i3 Verticals (NASDAQ:IIIV) & Farfetch (NASDAQ:FTCH)

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

Profitability

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

Net Margins Return on Equity Return on Assets
i3 Verticals -0.36% 14.53% 7.50%
Farfetch -40.23% -25.53% -20.02%

Earnings and Valuation

This table compares i3 Verticals and Farfetch’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
i3 Verticals $323.51 million 1.77 -$6.89 million $0.56 37.34
Farfetch $602.38 million 4.43 -$155.57 million ($0.59) -15.08

i3 Verticals has higher earnings, but lower revenue than Farfetch. Farfetch 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 Recommendations

This is a summary of recent ratings and price targets for i3 Verticals and Farfetch, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
i3 Verticals 0 0 4 0 3.00
Farfetch 0 2 9 0 2.82

i3 Verticals presently has a consensus target price of $26.25, indicating a potential upside of 25.54%. Farfetch has a consensus target price of $23.34, indicating a potential upside of 162.25%. Given Farfetch’s higher possible upside, analysts clearly believe Farfetch is more favorable than i3 Verticals.

Risk & Volatility

i3 Verticals has a beta of 0.36, meaning that its share price is 64% less volatile than the S&P 500. Comparatively, Farfetch has a beta of 2.5, meaning that its share price is 150% more volatile than the S&P 500.

Institutional & Insider Ownership

44.1% of i3 Verticals shares are held by institutional investors. Comparatively, 65.9% of Farfetch shares are held by institutional investors. 56.2% of i3 Verticals shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

i3 Verticals beats Farfetch on 7 of the 13 factors compared between the two stocks.

About i3 Verticals

i3 Verticals, Inc. provides integrated payment and software solutions to small- and medium-sized businesses and organizations in education, non-profit, public sector, property management, and healthcare markets in the United States. The company offers payment processing services, including merchant onboarding, risk and underwriting, authorization, settlement, chargeback processing, and other merchant support. Its payment processing services enable clients to accept electronic payments, facilitating the exchange of funds and transaction data between clients, financial institutions, and payment networks. The company also licenses software; and provides ongoing support, and other point of sale-related solutions. It offers its solutions to its clients through direct sales force, as well as through a network of distribution partners, including independent software vendors, value-added resellers, independent sales organizations, and other referral partners, such as financial institutions. The company was founded in 2012 and is headquartered in Nashville, Tennessee.

About Farfetch

Farfetch Ltd. engages in the retail of fashion and luxury goods. It offers womenswear, menswear, kidswear, vintage, fine watches, and fine jewelry. The company was founded by José Manuel Ferreira Neves in 2007 and launched in 2008 and is headquartered in London, the United Kingdom.

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