Information Analysis (OTCMKTS:IAIC – Get Free Report) and GSE Systems (NASDAQ:GVP – Get Free Report) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.
Risk and Volatility
Information Analysis has a beta of 3.25, suggesting that its stock price is 225% more volatile than the S&P 500. Comparatively, GSE Systems has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500.
Insider and Institutional Ownership
21.8% of GSE Systems shares are owned by institutional investors. 23.8% of Information Analysis shares are owned by insiders. Comparatively, 8.2% of GSE Systems shares are owned by 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 and Earnings
| 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 |
| GSE Systems | $45.45 million | 0.30 | -$8.72 million | ($2.87) | -1.48 |
Information Analysis has higher earnings, but lower revenue than GSE Systems. GSE Systems is trading at a lower price-to-earnings ratio than Information Analysis, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Information Analysis and GSE Systems, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Information Analysis | 0 | 0 | 0 | 0 | N/A |
| GSE Systems | 0 | 0 | 1 | 0 | 3.00 |
GSE Systems has a consensus target price of $13.00, indicating a potential upside of 205.16%.
Profitability
This table compares Information Analysis and GSE Systems’ 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% |
| GSE Systems | -17.08% | -137.64% | -34.22% |
Summary
Information Analysis beats GSE Systems on 8 of the 11 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 GSE Systems
GSE Systems, Inc. engages in the provision of professional and technical engineering services, staffing services, and simulation software to clients in the power and process industries in the United States, Asia, Europe, and internationally. It operates in two segments: Engineering and Workforce Solutions. The Engineering segment provides various technical engineering services for ASME programs; and simulation software and services, including operator training systems for the nuclear, fossil fuel power generation, and process industries. The segment also offers in-service testing for engineering programs focused on ASME OM code; in-service inspection for specialty engineering including ASME Section XI; software solutions; mechanical and civil/structural design; electrical, instrumentation, and controls design; digital controls/cyber security; and fire protection solutions for nuclear power plant design modifications. The Workforce Solutions segment supports project lifecycles and provides technical talent and specialty services comprising professional and training services, procedure writing services, and flexible staffing and talent acquisition services for energy, engineering, construction, government, infrastructure, environmental, and manufacturing industries, which include reactor operations instructors, procedure writers, project managers, engineers, work management specialists, planners, and training material developers. The company markets its products and services through a network of direct sales staff, agents and representatives, and strategic alliance partners. GSE Systems, Inc. was founded in 1971 and is headquartered in Columbia, Maryland.
Receive News & Ratings for Information Analysis Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Information Analysis and related companies with MarketBeat.com's FREE daily email newsletter.
