Internap (NASDAQ: INAP) and Internet Initiative Japan (NASDAQ:IIJI) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, risk, earnings and institutional ownership.
This table compares Internap and Internet Initiative Japan’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Internet Initiative Japan||2.92%||7.32%||3.56%|
Internap has a beta of 2.01, indicating that its stock price is 101% more volatile than the S&P 500. Comparatively, Internet Initiative Japan has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500.
This is a breakdown of recent recommendations for Internap and Internet Initiative Japan, 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|
Internap currently has a consensus price target of $28.00, indicating a potential upside of 113.74%. Given Internap’s higher possible upside, equities analysts plainly believe Internap is more favorable than Internet Initiative Japan.
Insider and Institutional Ownership
80.8% of Internap shares are held by institutional investors. Comparatively, 0.5% of Internet Initiative Japan shares are held by institutional investors. 5.9% of Internap shares are held by insiders. Comparatively, 6.7% of Internet Initiative Japan 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.
Valuation & Earnings
This table compares Internap and Internet Initiative Japan’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Internap||$280.72 million||0.99||-$45.34 million||($1.55)||-8.45|
|Internet Initiative Japan||$1.59 billion||0.60||$45.98 million||$0.52||19.71|
Internet Initiative Japan has higher revenue and earnings than Internap. Internap is trading at a lower price-to-earnings ratio than Internet Initiative Japan, indicating that it is currently the more affordable of the two stocks.
Internet Initiative Japan pays an annual dividend of $0.05 per share and has a dividend yield of 0.5%. Internap does not pay a dividend. Internet Initiative Japan pays out 9.6% of its earnings in the form of a dividend.
Internet Initiative Japan beats Internap on 8 of the 15 factors compared between the two stocks.
Internap Corporation provides Internet infrastructure services. It operates through two business segments, INAP COLO and INAP CLOUD. The INAP COLO segment offers colocation services, including physical space within data centers and related services, such as power, interconnection, environmental controls, monitoring, and security; and Internet protocol (IP) connectivity services comprising its patented Performance IP and content delivery network services, IP routing hardware and software platforms, and Managed Internet Route Optimizer controllers. This segment offers its colocation services through 56 data centers and 97 POPs worldwide. The INAP CLOUD segment provides hosted Infrastructure-as-a-Service as a cloud platform or through managed hosting that includes the provision and maintenance of hardware, data center infrastructure, and interconnection that enables its customers to own and manage their software applications and content. This segment offers cloud and managed hosting services, which comprise compute and storage services, as well as a single tenant infrastructure environment through an integrated platform that includes servers, storage, and network. The company serves various industries, including healthcare; advertising technology; financial; technology infrastructure; and gaming and software. The company was formerly known as Internap Network Services Corporation and changed its name to Internap Corporation in November 2014. Internap Corporation was founded in 1996 and is headquartered in Atlanta, Georgia.
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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