Financial Comparison: Information Analysis (OTCMKTS:IAIC) versus Shopify (NASDAQ:SHOP)

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Information Analysis and Shopify, as provided by MarketBeat.

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

Shopify has a consensus target price of $171.61, indicating a potential upside of 10.14%. Given Shopify’s stronger consensus rating and higher possible upside, analysts plainly believe Shopify is more favorable than Information Analysis.

Risk & Volatility

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

Insider and Institutional Ownership

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

Profitability

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

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Information Analysis	$13.90 million	0.00	$410,000.00	$0.04	N/A
Shopify	$8.88 billion	22.84	$2.02 billion	$1.35	115.41

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.

Summary

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

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.

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.