Comparing i3 Verticals (NASDAQ:IIIV) and Atlassian (NASDAQ:TEAM)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
i3 Verticals	4.24%	4.49%	3.31%
Atlassian	-0.82%	20.99%	4.36%

Risk and Volatility

i3 Verticals has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, Atlassian has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500.

Institutional & Insider Ownership

84.2% of i3 Verticals shares are owned by institutional investors. Comparatively, 94.5% of Atlassian shares are owned by institutional investors. 60.1% of i3 Verticals shares are owned by insiders. Comparatively, 37.6% of Atlassian shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for i3 Verticals and Atlassian, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
i3 Verticals	1	2	3	0	2.33
Atlassian	1	4	23	0	2.79

i3 Verticals presently has a consensus target price of $25.40, indicating a potential upside of 37.89%. Atlassian has a consensus target price of $216.36, indicating a potential upside of 15.65%. Given i3 Verticals’ higher possible upside, analysts plainly believe i3 Verticals is more favorable than Atlassian.

Earnings and Valuation

This table compares i3 Verticals and Atlassian”s gross 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	2.27	$17.87 million	$0.38	48.47
Atlassian	$6.57 billion	7.21	-$53.83 million	($0.19)	-984.63

i3 Verticals has higher earnings, but lower revenue than Atlassian. Atlassian 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

Atlassian beats i3 Verticals 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 Atlassian

Atlassian Corporation, through its subsidiaries, designs, develops, licenses, and maintains various software products worldwide. Its product portfolio includes Jira Software and Jira Work Management, a project management system that connects technical and business teams so they can better plan, organize, track and manage their work and projects; Confluence, a connected workspace that organizes knowledge across all teams to move work forward; and Trello, a collaboration and organization product that captures and adds structure to fluid and fast-forming work for teams. The company also offers Jira Service Management, an intuitive and flexible service desk product for creating and managing service experiences for various service team providers, such as IT, legal, and HR teams; and Jira Align, an Atlassian's enterprise agility solution designed to help businesses to adapt and respond dynamic business conditions with a focus on value-creation. In addition, it provides Bitbucket, an enterprise-ready Git solution that enables professional dev teams to manage, collaborate, and deploy quality code; Atlassian Access, an enterprise-wide product for enhanced security and centralized administration that works across every Atlassian cloud product; and Jira Product, a prioritization and road mapping tool. Further, the company's portfolio includes Atlas, a teamwork directory; Bamboo, a continuous delivery pipeline; Crowd, a single sign-on; Crucible, a collaborative code review; Fisheye, a search, track, and visualize code change software; and Compass, a developer experience platform. Additionally, it offers Opsgenie, an on-call and alert management software; Sourcetree, a free git client for windows and mac; Statuspage that communicates real-time status to users; Beacon, an intelligent threat detection software; and Atlassian Access that enhance data security and governance for Atlassian Cloud products. The company was founded in 2002 and is headquartered in Sydney, Australia.