Internet Initiative Japan (IIJI) & Professional Diversity Network (IPDN) Critical Review

Internet Initiative Japan (NASDAQ: IIJI) and Professional Diversity Network (NASDAQ:IPDN) are both small-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Volatility & Risk

Internet Initiative Japan has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Comparatively, Professional Diversity Network has a beta of 3, meaning that its share price is 200% more volatile than the S&P 500.

Earnings & Valuation

This table compares Internet Initiative Japan and Professional Diversity Network’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Internet Initiative Japan $1.59 billion 0.55 $45.98 million $0.52 18.15
Professional Diversity Network $22.05 million 0.77 -$22.28 million N/A N/A

Internet Initiative Japan has higher revenue and earnings than Professional Diversity Network.

Dividends

Internet Initiative Japan pays an annual dividend of $0.09 per share and has a dividend yield of 1.0%. Professional Diversity Network does not pay a dividend. Internet Initiative Japan pays out 17.3% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Internet Initiative Japan and Professional Diversity Network, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Internet Initiative Japan 0 0 0 0 N/A
Professional Diversity Network 0 0 0 0 N/A

Profitability

This table compares Internet Initiative Japan and Professional Diversity Network’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%
Professional Diversity Network -106.27% -50.94% -30.04%

Insider and Institutional Ownership

0.5% of Internet Initiative Japan shares are owned by institutional investors. Comparatively, 4.5% of Professional Diversity Network shares are owned by institutional investors. 6.7% of Internet Initiative Japan shares are owned by company insiders. Comparatively, 19.0% of Professional Diversity Network shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Internet Initiative Japan beats Professional Diversity Network on 6 of the 11 factors compared between the two stocks.

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.

About Professional Diversity Network

Professional Diversity Network, Inc. operates online professional networking communities with career resources in the United States. The company operates through three segments: Professional Diversity Network, National Association of Professional Women, and Noble Voice Operations. It serves various cultural groups, such as women; Hispanic-Americans; African-Americans; Asian-Americans; disabled; military professionals; lesbians, gays, bisexuals, and transgenders; and students and graduates. The company offers single and multiple job postings, recruitment media, talent recruitment communities, corporate memberships, and hiring campaign marketing and advertising, as well as e-newsletter marketing, research, and outreach services. It also provides consumer advertising and consumer marketing solutions through advertising and job postings on its Websites. The company serves federal, state, and local governments, as well as companies and contractors that serve governmental entities; small and medium sized businesses; and large enterprises. As of December 31, 2017, it had approximately 10,266,000 registered users. The company was founded in 2003 and is headquartered in Chicago, Illinois. Professional Diversity Network, Inc. is a subsidiary of Cosmic Forward Limited.

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