TripAdvisor (TRIP) & Internet Initiative Japan (IIJI) Head-To-Head Contrast

TripAdvisor (NASDAQ: TRIP) and Internet Initiative Japan (NASDAQ:IIJI) are both retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, analyst recommendations, profitability, earnings and valuation.

Dividends

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Internet Initiative Japan pays an annual dividend of $0.05 per share and has a dividend yield of 0.5%. TripAdvisor does not pay a dividend. Internet Initiative Japan pays out 15.6% of its earnings in the form of a dividend.

Risk and Volatility

TripAdvisor has a beta of 1.83, meaning that its share price is 83% more volatile than the S&P 500. Comparatively, Internet Initiative Japan has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500.

Earnings and Valuation

This table compares TripAdvisor and Internet Initiative Japan’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TripAdvisor $1.56 billion 3.77 -$19.00 million $0.48 88.04
Internet Initiative Japan $1.46 billion 0.62 $29.44 million $0.32 30.38

Internet Initiative Japan has lower revenue, but higher earnings than TripAdvisor. Internet Initiative Japan is trading at a lower price-to-earnings ratio than TripAdvisor, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for TripAdvisor and Internet Initiative Japan, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TripAdvisor 4 19 0 0 1.83
Internet Initiative Japan 0 0 0 0 N/A

TripAdvisor currently has a consensus target price of $40.47, suggesting a potential downside of 4.23%. Given TripAdvisor’s higher possible upside, analysts plainly believe TripAdvisor is more favorable than Internet Initiative Japan.

Profitability

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

Net Margins Return on Equity Return on Assets
TripAdvisor -1.22% 5.63% 3.32%
Internet Initiative Japan 2.29% 7.26% 3.58%

Insider and Institutional Ownership

88.6% of TripAdvisor shares are held by institutional investors. Comparatively, 0.5% of Internet Initiative Japan shares are held by institutional investors. 1.1% of TripAdvisor shares are held by company insiders. Comparatively, 6.7% of Internet Initiative Japan shares are held by company 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.

Summary

TripAdvisor beats Internet Initiative Japan on 8 of the 14 factors compared between the two stocks.

About TripAdvisor

TripAdvisor, Inc. operates as an online travel company. The company operates in two segments, Hotel and Non-Hotel. Its travel platform aggregates reviews and opinions of members about destinations, accommodations, activities and attractions, and restaurants, which enables users to research and plan their travel experiences, as well as book hotels, flights, cruises, vacation rentals, tours, activities and attractions, and restaurant reservations on its site or mobile app, or on the site or app of travel partner sites. The company operates TripAdvisor-branded Websites, including tripadvisor.com in the United States; and localized versions of the Website in 48 markets and 28 languages. It also manages and operates 20 other media brands that provide users the comprehensive travel-planning and trip-taking resources in the travel industry, such as airfarewatchdog.com, bookingbuddy.com, citymaps.com, cruisecritic.com, familyvacationcritic.com, flipkey.com, thefork.com, gateguru.com, holidaylettings.co.uk, holidaywatchdog.com, housetrip.com, jetsetter.com, niumba.com, onetime.com, oyster.com, seatguru.com, smartertravel.com, tingo.com, vacationhomerentals.com, and viator.com. The company's Websites feature 600 million reviews and opinions on 7.5 million places comprising 1.2 million hotels, inns, B&Bs, and specialty lodging; 750,000 vacation rentals; 4.6 million restaurants; and 915,000 activities and attractions worldwide. TripAdvisor, Inc. was founded in 2000 and is headquartered in Needham, Massachusetts.

About Internet Initiative Japan

Internet Initiative Japan Inc. offers Internet connectivity, WAN, outsourcing, systems integration, and equipment sales services in Japan. It operates in two segments, Network Services and Systems Integration Business, and ATM Operation Business. The company's Internet connectivity services for enterprise include IP services and IIJ data center connectivity services, IIJ FiberAccess/F and IIJ DSL/F services, IIJ mobile services, and dial-up access services, as well as other Internet connectivity services comprising IIJ ISDN/F and IIJ line management/F services. Its Internet connectivity services for consumers consist of various service, including ADSL, fiber optic, WiMAX, 3G, and LTE wireless data communication services under the IIJ4U, IIJmio, and hi-ho brand names. The company also offers WAN services, a closed network service primarily using dedicated lines, as well as wide-area Ethernet services and IP-VPN services to corporate customers; outsourcing services that comprise security-related, network-related, server-related, data center-related, and IIJ GIO/Hosting package services for non-customizable hosting package cloud computing services; and customer support and help desk solutions, and IP phone services. In addition, it provides systems integration services, which include consulting, project planning, systems design, and development of network systems, which focus on Internet business systems, and Intranet and Extranet corporate information systems; and systems operation and maintenance services. Further, the company sells routers, iPads, and other equipment, as well as software; and provides automated teller machine (ATM) services. As of June 30, 2017, it operated 30 primary points of presence (POP) for dedicated access and 1 universal POP for nationwide dial-up access; 27 Internet data centers; and 1,066 ATMs. The company was founded in 1992 and is headquartered in Tokyo, Japan.

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