Information Analysis (OTCMKTS:IAIC) vs. GSE Systems (NASDAQ:GVP) Head-To-Head Survey

GSE Systems (NASDAQ:GVP) and Information Analysis (OTCMKTS:IAIC) are both small-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.

Institutional and Insider Ownership

21.8% of GSE Systems shares are held by institutional investors. 8.2% of GSE Systems shares are held by insiders. Comparatively, 23.8% of Information Analysis shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GSE Systems	-17.08%	-137.64%	-34.22%
Information Analysis	3.72%	18.48%	9.33%

Earnings & Valuation

This table compares GSE Systems and Information Analysis’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GSE Systems	$45.04 million	0.30	-$8.72 million	($2.87)	-1.43
Information Analysis	$13.90 million	4.16	$410,000.00	$0.04	107.03

Information Analysis has lower revenue, but higher earnings 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.

Risk and Volatility

GSE Systems has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500. Comparatively, Information Analysis has a beta of 3.25, suggesting that its share price is 225% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for GSE Systems and Information Analysis, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GSE Systems	0	0	1	0	3.00
Information Analysis	0	0	0	0	N/A

GSE Systems presently has a consensus target price of $13.00, indicating a potential upside of 216.30%. Given GSE Systems’ higher possible upside, analysts plainly believe GSE Systems is more favorable than Information Analysis.

Summary

Information Analysis beats GSE Systems on 9 of the 13 factors compared between the two stocks.

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.

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.