Head-To-Head Comparison: Information Analysis (OTCMKTS:IAIC) and Shopify (NASDAQ:SHOP)

Shopify (NASDAQ:SHOP) and Information Analysis (OTCMKTS:IAIC) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Earnings & Valuation

This table compares Shopify and Information Analysis”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shopify	$8.88 billion	24.11	$2.02 billion	$1.35	121.84
Information Analysis	$13.90 million	0.00	$410,000.00	$0.04	N/A

Shopify has higher revenue and earnings than Information Analysis. Information Analysis is trading at a lower price-to-earnings ratio than Shopify, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

69.3% of Shopify shares are owned by institutional investors. 23.8% of Information Analysis shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Shopify and Information Analysis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shopify	16.65%	11.72%	9.73%
Information Analysis	3.72%	18.48%	9.33%

Volatility & Risk

Shopify has a beta of 2.83, indicating that its share price is 183% more volatile than the S&P 500. Comparatively, Information Analysis has a beta of 3.25, indicating that its share price is 225% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Shopify and Information Analysis, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shopify	0	21	24	0	2.53
Information Analysis	0	0	0	0	0.00

Shopify currently has a consensus target price of $171.61, suggesting a potential upside of 4.34%. Given Shopify’s stronger consensus rating and higher probable upside, analysts clearly believe Shopify is more favorable than Information Analysis.

Summary

Shopify beats Information Analysis on 10 of the 13 factors compared between the two stocks.

About Shopify

Shopify Inc., a commerce company, provides a commerce platform and services in Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, Australia, China, and Latin America. The company’s platform enables merchants to displays, manages, markets, and sells its products through various sales channels, including web and mobile storefronts, physical retail locations, pop-up shops, social media storefronts, native mobile apps, buy buttons, and marketplaces; and enables to manage products and inventory, process orders and payments, fulfill and ship orders, new buyers and build customer relationships, source products, leverage analytics and reporting, manage cash, payments and transactions, and access financing. It also sells custom themes and apps, and registration of domain names; and merchant solutions, which include accepting payments, shipping, and securing working capital. The company was formerly known as Jaded Pixel Technologies Inc. and changed its name to Shopify Inc. in November 2011. Shopify Inc. was incorporated in 2004 and is headquartered in Ottawa, Canada.

About Information Analysis

Information Analysis, Inc. provides information technology services. The firm engages in the business of modernizing client information systems, developing and maintaining information technology systems, and performing consulting services to government and commercial organizations. It specializes in legacy systems modernization, ebusiness solutions, enterprise portals, system migration and re-hosting services, and enterprise application integration. The company was founded by Sandor Rosenberg in 1979 and is headquartered in Fairfax, VA.