Similarweb (NYSE:SMWB – 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 businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, dividends and analyst recommendations.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Similarweb and i3 Verticals, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Similarweb | 1 | 5 | 5 | 0 | 2.36 |
| i3 Verticals | 1 | 2 | 3 | 0 | 2.33 |
Similarweb currently has a consensus price target of $9.71, indicating a potential upside of 20.26%. i3 Verticals has a consensus price target of $25.40, indicating a potential upside of 29.66%. Given i3 Verticals’ higher possible upside, analysts plainly believe i3 Verticals is more favorable than Similarweb.
Earnings and Valuation
This table compares Similarweb and i3 Verticals”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Similarweb | $295.61 million | 2.39 | -$32.94 million | ($0.25) | -32.31 |
| i3 Verticals | $213.16 million | 2.42 | $17.87 million | $0.38 | 51.55 |
i3 Verticals has lower revenue, but higher earnings than Similarweb. Similarweb is trading at a lower price-to-earnings ratio than i3 Verticals, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Similarweb has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, i3 Verticals has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500.
Profitability
This table compares Similarweb and i3 Verticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Similarweb | -7.37% | -19.81% | -1.74% |
| i3 Verticals | 4.24% | 4.49% | 3.31% |
Institutional & Insider Ownership
57.6% of Similarweb shares are held by institutional investors. Comparatively, 84.2% of i3 Verticals shares are held by institutional investors. 62.4% of Similarweb shares are held by company insiders. Comparatively, 60.1% 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 Similarweb on 9 of the 14 factors compared between the two stocks.
About Similarweb
Similarweb Ltd. is a digital intelligence company that helps businesses understand online activity and competition. Its platform collects and analyzes data about website visits, mobile app usage, search behavior and other digital interactions, then presents the information through analytics and benchmarking tools. Similarweb’s products support market research, competitive analysis, digital marketing, sales prospecting and investment research. Customers can use the platform to assess digital audiences and trends, compare performance with competitors, and identify opportunities across online markets.
About i3 Verticals
i3 Verticals is a software company that develops technology for specialized markets, with a focus on public-sector organizations. Its products support functions such as utility billing, court and government operations, and payment collection. The company has also served customers in education and other markets, offering software designed to manage sector-specific administrative and operational needs. Its solutions can include integrated payment capabilities that help organizations process transactions through their software systems.
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