CI&T (NYSE:CINT – Get Free Report) and i3 Verticals (NASDAQ:IIIV – Get Free Report) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.
Risk and Volatility
CI&T has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, i3 Verticals has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.
Valuation and Earnings
This table compares CI&T 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 | |
| CI&T | $439.11 million | 1.39 | $29.49 million | $0.24 | 18.94 |
| i3 Verticals | $229.92 million | 4.10 | $113.34 million | $5.22 | 5.60 |
i3 Verticals has lower revenue, but higher earnings than CI&T. i3 Verticals is trading at a lower price-to-earnings ratio than CI&T, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and target prices for CI&T and i3 Verticals, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CI&T | 0 | 2 | 5 | 2 | 3.00 |
| i3 Verticals | 0 | 3 | 5 | 0 | 2.63 |
CI&T currently has a consensus target price of $7.80, indicating a potential upside of 71.58%. i3 Verticals has a consensus target price of $34.33, indicating a potential upside of 17.50%. Given CI&T’s stronger consensus rating and higher possible upside, equities analysts plainly believe CI&T is more favorable than i3 Verticals.
Profitability
This table compares CI&T and i3 Verticals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CI&T | 7.27% | 11.34% | 6.05% |
| i3 Verticals | 55.87% | 3.87% | 2.91% |
Insider and Institutional Ownership
92.5% of CI&T shares are held by institutional investors. Comparatively, 84.2% of i3 Verticals shares are held by institutional investors. 59.1% of i3 Verticals shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Summary
CI&T beats i3 Verticals on 8 of the 14 factors compared between the two stocks.
About CI&T
CI&T, Inc. provides strategy, design and software engineering services to enable digital transformation. The firm’s solutions and services include Digital Strategy, Customer-Centric Design and Top-of-the-Line Software Engineering. The company was founded by Cesar Nivaldo Gon, Bruno Guiçardi Neto and Fernando Matt Borges Martins on June 7, 2021 and is headquartered in Sao Paulo, Brazil.
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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