Reviewing i3 Verticals (NASDAQ:IIIV) & Klaviyo (NYSE:KVYO)

i3 Verticals (NASDAQ:IIIV) and Klaviyo (NYSE:KVYO) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, risk, profitability, valuation and earnings.

Analyst Ratings

This is a summary of recent recommendations and price targets for i3 Verticals and Klaviyo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
i3 Verticals	0	3	4	0	2.57
Klaviyo	1	3	20	0	2.79

i3 Verticals presently has a consensus target price of $33.20, suggesting a potential upside of 49.55%. Klaviyo has a consensus target price of $34.24, suggesting a potential upside of 84.82%. Given Klaviyo’s stronger consensus rating and higher probable upside, analysts clearly believe Klaviyo is more favorable than i3 Verticals.

Risk and Volatility

i3 Verticals has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, Klaviyo has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500.

Institutional and Insider Ownership

84.2% of i3 Verticals shares are held by institutional investors. Comparatively, 45.4% of Klaviyo shares are held by institutional investors. 60.1% of i3 Verticals shares are held by insiders. Comparatively, 49.9% of Klaviyo shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
i3 Verticals	7.33%	4.32%	3.49%
Klaviyo	-2.57%	2.03%	1.58%

Valuation & Earnings

This table compares i3 Verticals and Klaviyo”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
i3 Verticals	$213.16 million	3.37	$17.87 million	$0.62	35.81
Klaviyo	$1.23 billion	4.53	-$46.14 million	($0.12)	-154.38

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

Summary

i3 Verticals beats Klaviyo 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 Klaviyo

Klaviyo, Inc., a technology company, provides a software-as-a-service platform in the United States, other Americas, the Asia-Pacific, Europe, the Middle East, and Africa. The company offers Klaviyo, a cloud-native platform for data store, segmentation engine, campaigns and flows, and messaging infrastructure. It also provides email to send personalized marketing emails, including drag-and-drop email templates to edit and customize pre-built templates; email campaigns and automations with smart send time features, generative artificial intelligence for subject line creation, A/B testing tools, and consumer list segmentation; short message services to send targeted marketing text messages to consumers, as well as built-in contact cards to ensure that texts does not appear as random numbers; and push, a personalized push notification to engage with consumer. In addition, the company offers other applications, such as reviews, which collect product reviews; and customer data platform that allows to manage, deploy, transform, and sync data. It serves its products to entrepreneurs, small and medium-sized businesses to mid-market businesses, and enterprises. The was incorporated in 2012 and is headquartered in Boston, Massachusetts.