Comparing Internet Initiative Japan (IIJI) and Sify (NASDAQ:SIFY)

Internet Initiative Japan (NASDAQ: IIJI) and Sify (NASDAQ:SIFY) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Risk & Volatility

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Internet Initiative Japan has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500. Comparatively, Sify has a beta of 1.74, suggesting that its share price is 74% more volatile than the S&P 500.

Valuation and Earnings

This table compares Internet Initiative Japan and Sify’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Internet Initiative Japan $1.46 billion 0.63 $29.44 million $0.32 30.97
Sify $284.26 million 0.29 $9.90 million N/A N/A

Internet Initiative Japan has higher revenue and earnings than Sify.

Dividends

Internet Initiative Japan pays an annual dividend of $0.05 per share and has a dividend yield of 0.5%. Sify pays an annual dividend of $0.01 per share and has a dividend yield of 0.5%. Internet Initiative Japan pays out 15.6% of its earnings in the form of a dividend.

Insider and Institutional Ownership

0.5% of Internet Initiative Japan shares are held by institutional investors. Comparatively, 3.9% of Sify shares are held by institutional investors. 6.7% of Internet Initiative Japan shares are held by insiders. Comparatively, 77.0% of Sify shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Internet Initiative Japan and Sify’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Internet Initiative Japan 2.29% 7.26% 3.58%
Sify N/A N/A N/A

Analyst Recommendations

This is a breakdown of current ratings and target prices for Internet Initiative Japan and Sify, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Internet Initiative Japan 0 0 0 0 N/A
Sify 0 0 0 0 N/A

Sify has a consensus target price of $3.00, indicating a potential upside of 41.51%. Given Sify’s higher possible upside, analysts clearly believe Sify is more favorable than Internet Initiative Japan.

Summary

Internet Initiative Japan beats Sify on 7 of the 12 factors compared between the two stocks.

Internet Initiative Japan Company Profile

Internet Initiative Japan Inc. (IIJ) is an Internet service provider (ISP) in Japan that offers Internet connectivity services for both enterprises and consumers. The Company provides Internet connectivity services, wide area network (WAN) services, outsourcing services, systems integration and equipment sales as total network solutions to Japanese corporate clients and governmental organizations. The Company operates through two segments: a network services and systems integration business segment and an ATM operation business segment. The network services and systems integration business segment consist of its Internet connectivity services for enterprise and consumers, WAN services, outsourcing services, systems integration and equipment sales. The ATM operation business is conducted by its subsidiary, Trust Networks Inc. (Trust Networks), which operates automated teller machines (ATMs) and its network systems.

Sify Company Profile

Sify Technologies Limited provides integrated information and communications technology solutions and services in India and internationally. The company's Telecom Services segment offers Internet protocol based virtual private network services, including intranets, extranets, and remote access applications; and last mile connectivity services. The company's Data Centre Services segment provides co-location, regular backup, server load balancing, and remote backup solutions; messaging, shared hosting, network, and security services; storage and virtualization services; and managed voice services to resident enterprises. Its Cloud and Managed services segment offers on-demand hosting services; and remote and onsite infrastructure management services that manages and supports customer operating systems, applications, and database layers, as well as utility-based on-demand storage service that manages the lifecycle of enterprise information. The company's Technology Integration Services segment provides data center build, network integration, information security, end user computing, and collaborative tools and solutions. Its Application Integration services segment offers a range of Web-applications; and operates online portals, including sify.com and samachar.com, which acts as principal entry points and gateway for accessing the Internet, as well as related content sites. In addition, it provides Website design, development, content management, online assessment tools, and search engine optimization services; messaging and collaboration solutions; on-line testing engine and network management services; and on-line exam engine solutions. The company was formerly known as Sify Limited and changed its name to Sify Technologies Limited in October 2007. Sify Technologies Limited was founded in 1995 and is headquartered in Chennai, India.

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