Radware (NASDAQ:RDWR) and i3 Verticals (NASDAQ:IIIV) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, dividends, analyst recommendations, earnings and institutional ownership.
This table compares Radware and i3 Verticals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations and price targets for Radware and i3 Verticals, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Radware presently has a consensus price target of $30.00, suggesting a potential upside of 22.10%. i3 Verticals has a consensus price target of $26.20, suggesting a potential upside of 28.12%. Given i3 Verticals’ higher possible upside, analysts plainly believe i3 Verticals is more favorable than Radware.
Risk and Volatility
Radware has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500. Comparatively, i3 Verticals has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500.
Institutional & Insider Ownership
73.0% of Radware shares are held by institutional investors. Comparatively, 44.5% of i3 Verticals shares are held by institutional investors. 21.6% of Radware shares are held by company insiders. Comparatively, 56.2% of i3 Verticals shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Radware and i3 Verticals’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Radware||$234.40 million||4.67||$11.73 million||$0.29||84.72|
|i3 Verticals||$323.51 million||1.73||-$6.89 million||$0.56||36.52|
Radware has higher earnings, but lower revenue than i3 Verticals. i3 Verticals is trading at a lower price-to-earnings ratio than Radware, indicating that it is currently the more affordable of the two stocks.
Radware Ltd. develops, manufactures, and markets cyber security and application delivery solutions for applications in physical, virtual, cloud, and software defined data centers worldwide. The company offers DefensePro, a real-time network attack prevention device; AppWall, a Web application firewall; and DefenseFlow, a cyber-command and control application. It also provides Alteon D Line, an application delivery controller/load balancer for Web, cloud, and mobile based applications; and LinkProof NG, a multi-homing and enterprise gateway solution for connectivity of enterprise and cloud-based applications. In addition, the company offers Security Updates Subscription, which provides security updates to protect customers against the latest threats; ERT Active Attackers Feed that provides customers with information pertaining to attack sources recently involved in DDoS attacks; Alteon Global Elastic License that captures application lifecycle for large ADC deployments; APSolute Vision, a management and monitoring tool for company's application delivery and cyber security solutions; and MSSP Portal, a DDoS detection and mitigation service portal. Further, it provides Cloud DDoS Protection Service, which offers a range of enterprise-grade DDoS protection services in the cloud, as well as technical support, professional, managed, and training and certification services to its customers. The company sells its products primarily to independent distributors, including value added resellers, original equipment manufacturers, and system integrators. Radware Ltd. was founded in 1996 and is headquartered in Tel Aviv, Israel.
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.
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