Financial Analysis: Maplebear (NASDAQ:CART) & i3 Verticals (NASDAQ:IIIV)

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

Analyst Ratings

This is a summary of recent recommendations for i3 Verticals and Maplebear, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
i3 Verticals	0	2	4	1	2.86
Maplebear	0	13	15	1	2.59

i3 Verticals currently has a consensus price target of $29.86, indicating a potential upside of 3.20%. Maplebear has a consensus price target of $48.96, indicating a potential downside of 2.57%. Given i3 Verticals’ stronger consensus rating and higher possible upside, equities research analysts clearly believe i3 Verticals is more favorable than Maplebear.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
i3 Verticals	41.85%	3.59%	1.76%
Maplebear	13.37%	13.78%	10.51%

Volatility & Risk

i3 Verticals has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500. Comparatively, Maplebear has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.

Earnings & Valuation

This table compares i3 Verticals and Maplebear”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
i3 Verticals	$229.92 million	4.22	$113.34 million	$4.49	6.44
Maplebear	$3.04 billion	4.24	-$1.62 billion	$1.49	33.72

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

Institutional and Insider Ownership

84.2% of i3 Verticals shares are owned by institutional investors. Comparatively, 63.1% of Maplebear shares are owned by institutional investors. 59.1% of i3 Verticals shares are owned by insiders. Comparatively, 36.0% of Maplebear shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

i3 Verticals beats Maplebear on 8 of the 14 factors compared between the two stocks.

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.

About Maplebear

Maplebear Inc., doing business as Instacart, engages in the provision of online grocery shopping services to households in North America. It sells and delivers grocery products, as well as pickup services through a mobile application and website. It also operates virtual convenience stores; and provides software-as-a-service solutions to retailers. The company was incorporated in 2012 and is based in San Francisco, California.