i3 Verticals (NASDAQ:IIIV) versus AvidXchange (NASDAQ:AVDX) Head to Head Contrast

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

Valuation and Earnings

This table compares AvidXchange and i3 Verticals”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AvidXchange	$446.72 million	4.65	$8.15 million	($0.05)	-200.00
i3 Verticals	$229.92 million	4.14	$113.34 million	$5.22	5.65

i3 Verticals has lower revenue, but higher earnings than AvidXchange. AvidXchange is trading at a lower price-to-earnings ratio than i3 Verticals, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

80.6% of AvidXchange shares are owned by institutional investors. Comparatively, 84.2% of i3 Verticals shares are owned by institutional investors. 11.1% of AvidXchange shares are owned by company insiders. Comparatively, 59.1% of i3 Verticals shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and target prices for AvidXchange and i3 Verticals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AvidXchange	2	14	0	0	1.88
i3 Verticals	0	3	5	0	2.63

AvidXchange currently has a consensus price target of $9.79, indicating a potential downside of 2.08%. i3 Verticals has a consensus price target of $34.33, indicating a potential upside of 16.42%. Given i3 Verticals’ stronger consensus rating and higher probable upside, analysts clearly believe i3 Verticals is more favorable than AvidXchange.

Risk and Volatility

AvidXchange has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, i3 Verticals has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AvidXchange	-1.80%	1.15%	0.39%
i3 Verticals	55.87%	3.87%	2.91%

Summary

i3 Verticals beats AvidXchange on 12 of the 14 factors compared between the two stocks.

About AvidXchange

AvidXchange Holdings, Inc. provides accounts payable (AP) automation software and payment solutions for middle market businesses and their suppliers in North America. The company offers AP automation software, a SaaS-based solution that automates and digitizes capture, review, approval, and payment of invoices for buyers; the AvidPay network that connects two-sided payments with buyers and suppliers; and the AvidXchange Supplier Hub, which provides supplier insights to cash flow, tools for in-network invoices and payments, and early payment feature. Its platform offers electronic invoice capture, workflow routing, and automated payments solutions. The company serves real estate, community association management, construction, financial services, healthcare facilities, social services, education, hospitality, and media sectors through direct salesforces; strategic channel partnerships; and software and technology business partners. AvidXchange Holdings, Inc. was incorporated in 2000 and is headquartered in Charlotte, North Carolina.

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.