Head-To-Head Analysis: Information Analysis (OTCMKTS:IAIC) and Aware (NASDAQ:AWRE)

Information Analysis (OTCMKTS:IAIC) and Aware (NASDAQ:AWRE) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Earnings & Valuation

This table compares Information Analysis and Aware’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Information Analysis	$13.90 million	4.16	$410,000.00	$0.04	107.03
Aware	$18.24 million	2.15	-$7.31 million	($0.33)	-5.64

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

Risk & Volatility

Information Analysis has a beta of 3.25, suggesting that its stock price is 225% more volatile than the S&P 500. Comparatively, Aware has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500.

Profitability

This table compares Information Analysis and Aware’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%
Aware	-36.65%	-13.16%	-9.88%

Institutional & Insider Ownership

24.4% of Aware shares are held by institutional investors. 23.8% of Information Analysis shares are held by company insiders. Comparatively, 28.0% of Aware shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Information Analysis and Aware, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Information Analysis	0	0	0	0	N/A
Aware	0	0	0	0	N/A

Summary

Information Analysis beats Aware 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 Aware

Aware, Inc., an authentication company, provides biometrics software products and solutions for government agencies and commercial entities in the United States, the United Kingdom, and internationally. The company offers biometric software solution, including Knomi, a mobile biometric framework which provides multiple biometric modality options; AwareABIS, an automated biometric identification system used for large-scale biometric identification and deduplication; AFIX suite used for small-scale law enforcement focused biometric identification; and AFIX Tracker for fingerprint, palmprint, and latent print identification, as well as AFIX Face, AFIX Verifier, AFIX Identifier, AFIX Comparator, AFIX Engine, and AFIX NIST Transaction Engine. It also provides BioSP, a biometric integration platform-as-a-service that enables biometric data processing and management functionality in a web services architecture; WebEnroll, a browser-based biometric enrollment and data management solution; and AwareID, a software-as-a-service that provides identity verification and continuous authentication capabilities. In addition, the company offers biometrics applications, such as Nexa line, a biometric search and match SDKs including Nexa Fingerprint, Nexa Face, Nexa Iris, and Nexa Voice; and AwareXM, an interoperable fingerprint matching SDK that provides fingerprint minutiae extraction, template generation, and fingerprint authentication. Further, it sells imaging products used in medical and advanced imaging application; and offers software maintenance, program management, and software engineering services. The company sells its products, services, and solutions through systems integrators, direct, and original equipment manufacturers and value added resellers channel. Aware, Inc. was incorporated in 1986 and is headquartered in Burlington, Massachusetts.