i3 Verticals (NASDAQ:IIIV) versus Bread Financial (NYSE:BFH) Head-To-Head Comparison

Bread Financial (NYSE:BFHGet Rating) and i3 Verticals (NASDAQ:IIIVGet Rating) are both small-cap business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

95.7% of Bread Financial shares are owned by institutional investors. Comparatively, 64.3% of i3 Verticals shares are owned by institutional investors. 0.2% of Bread Financial shares are owned by company insiders. Comparatively, 31.9% of i3 Verticals shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Bread Financial and i3 Verticals’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bread Financial $3.27 billion 0.61 $801.00 million $9.26 4.30
i3 Verticals $224.12 million 3.23 -$4.46 million ($0.66) -33.94

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

Risk and Volatility

Bread Financial has a beta of 1.99, indicating that its stock price is 99% more volatile than the S&P 500. Comparatively, i3 Verticals has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500.

Profitability

This table compares Bread Financial and i3 Verticals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bread Financial 11.74% 22.88% 2.34%
i3 Verticals -4.71% 8.22% 3.20%

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bread Financial 0 1 0 0 2.00
i3 Verticals 0 1 3 1 3.00

Bread Financial presently has a consensus price target of $62.00, suggesting a potential upside of 55.62%. i3 Verticals has a consensus price target of $32.00, suggesting a potential upside of 42.86%. Given Bread Financial’s higher probable upside, equities research analysts clearly believe Bread Financial is more favorable than i3 Verticals.

Summary

Bread Financial beats i3 Verticals on 9 of the 15 factors compared between the two stocks.

About Bread Financial

(Get Rating)

Bread Financial Holdings, Inc. provides tech-forward payment and lending solutions to customers and consumer-based industries in North America. It offers credit card and other loans financing services, including risk management solutions, account origination, and funding services for approximately 130 private label and co-brand credit card programs, as well as through Bread partnerships to approximately 500 small-and medium-sized businesses merchants; and Comenity-branded general purpose cash-back credit. The company also manages and services the loans it originates for private label, co-brand, and general-purpose credit card programs and Bread BNPL (installment loans, split-pay) products; and provides marketing, and data and analytics services. In addition, it offers an enhanced digital suite that includes a unified software development kit, which provides access to its suite of products, as well as promotes credit payment options earlier in the shopping experience. Further, the company through Bread, a digital payments platform and robust suite of application programming interfaces allows merchants and partners to integrate online point-of-sale financing and other digital payment products, including installment and split-pay solutions. The company was formerly known as Alliance Data Systems Corporation and changed its name to Bread Financial Holdings, Inc. in March 2022. Bread Financial Holdings, Inc. was founded in 1996 and is headquartered in Columbus, Ohio.

About i3 Verticals

(Get Rating)

i3 Verticals, Inc. provides integrated payment and software solutions to small- and medium-sized businesses and organizations in education, non-profit, public sector, and healthcare markets in the United States. It operates in two segments, Merchant Services, and Proprietary Software and Payments. The company offers payment processing services that enables clients to accept electronic payments, facilitating the exchange of funds and transaction data between clients, financial institutions, and payment networks. The company also licenses software; and provides ongoing support, and other point of sale-related solutions. It offers its solutions to clients through direct sales force; distribution partners, including independent software vendors, value-added resellers, and independent sales organizations; and referral partners, such as financial institutions, trade associations, chambers of commerce, and card issuers. The company was founded in 2012 and is headquartered in Nashville, Tennessee.

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