Critical Contrast: Information Analysis (OTCMKTS:IAIC) versus Roblox (NYSE:RBLX)

Roblox (NYSE:RBLX) and Information Analysis (OTCMKTS:IAIC) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, valuation, earnings, dividends and profitability.

Insider & Institutional Ownership

94.5% of Roblox shares are held by institutional investors. 22.2% of Roblox shares are held by company insiders. Comparatively, 23.8% of Information Analysis shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Roblox and Information Analysis”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Roblox	$3.60 billion	10.43	-$935.38 million	($1.45)	-41.22
Information Analysis	$13.90 million	0.00	$410,000.00	$0.04	N/A

Information Analysis has lower revenue, but higher earnings than Roblox. Roblox 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 Ratings

This is a summary of recent ratings for Roblox and Information Analysis, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Roblox	1	7	18	1	2.70
Information Analysis	0	0	0	0	0.00

Roblox presently has a consensus price target of $64.00, suggesting a potential upside of 7.09%. Given Roblox’s stronger consensus rating and higher probable upside, analysts plainly believe Roblox is more favorable than Information Analysis.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Roblox	-25.97%	-665.98%	-14.02%
Information Analysis	3.72%	18.48%	9.33%

Volatility and Risk

Roblox has a beta of 1.49, meaning that its share price is 49% more volatile than the S&P 500. Comparatively, Information Analysis has a beta of 3.25, meaning that its share price is 225% more volatile than the S&P 500.

Summary

Information Analysis beats Roblox on 8 of the 14 factors compared between the two stocks.

About Roblox

Roblox Corporation develops and operates an online entertainment platform in the United States and internationally. It offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D experience; and Roblox Cloud, which provides services and infrastructure that power the platform. Roblox Corporation was incorporated in 2004 and is headquartered in San Mateo, California.

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.