CyberAgent (OTCMKTS:CYGIY – Get Free Report) and Internet Initiative Japan (OTCMKTS:IIJIY – Get Free Report) are both mid-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, dividends, institutional ownership, risk, profitability, analyst recommendations and valuation.
Dividends
CyberAgent pays an annual dividend of $0.07 per share and has a dividend yield of 1.8%. Internet Initiative Japan pays an annual dividend of $0.36 per share and has a dividend yield of 0.9%. CyberAgent pays out 25.9% of its earnings in the form of a dividend. Internet Initiative Japan pays out 20.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Earnings and Valuation
This table compares CyberAgent and Internet Initiative Japan”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CyberAgent | $5.86 billion | 0.67 | $212.18 million | $0.27 | 14.26 |
| Internet Initiative Japan | $2.29 billion | 1.52 | $160.68 million | $1.80 | 21.14 |
CyberAgent has higher revenue and earnings than Internet Initiative Japan. CyberAgent 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.
Analyst Recommendations
This is a summary of current recommendations and price targets for CyberAgent and Internet Initiative Japan, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CyberAgent | 0 | 0 | 0 | 0 | 0.00 |
| Internet Initiative Japan | 0 | 0 | 0 | 1 | 4.00 |
Profitability
This table compares CyberAgent and Internet Initiative Japan’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CyberAgent | 4.60% | 18.41% | 9.33% |
| Internet Initiative Japan | 6.97% | 15.88% | 7.27% |
Volatility & Risk
CyberAgent has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500. Comparatively, Internet Initiative Japan has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.
Summary
Internet Initiative Japan beats CyberAgent on 8 of the 13 factors compared between the two stocks.
About CyberAgent
CyberAgent, Inc. engages in the media, internet advertising, game, and investment development businesses primarily in Japan. The company operates Ameba, a blog service; Tapple for online dating; AWA, a music streaming service; and WinTicket for online betting. It also offers internet advertising agency and ad technology services; and smartphone games. In addition, the company operates a programming school for kids and provides application and reward points exchange platform services; artificial intelligence services; and digital transformation services. CyberAgent, Inc. was incorporated in 1998 and is headquartered in Tokyo, Japan.
About Internet Initiative Japan
Internet Initiative Japan Inc. provides Internet connectivity, WAN, outsourcing, systems integration, and network-related equipment sales services in Japan. It operates through two segments, Network Services and Systems Integration Business, and ATM Operation Business. The company offers mobile communication and remote access/telework services; WAN/network services, including SDN, multi-cloud network, closed connection, internet VPN, SEIL, remote access, wireless LAN, and GIGA-school; leased line and broadband services; IIJ DNS platform, and domain name registration and maintenance services; IIJ access ID management, dial-up access, and IIJ IPv6 fiber access services; and security solutions for IIJ managed firewall, DDoS protection, and managed IPS/IDS services. It also provides cloud solutions, such as HaaS/IaaS, cloud storage, monitoring/operation, virtual desktop, Paas/Saas, solution for Microsoft and AWS, IoT/M2M, ID management and authentication, network, global, mobile, license, and specialized solutions, as well as IIJ cloud exchange and IIJ cloud integration solutions; integrated, network, mail, and web security, endpoint, security assessment/consulting, web and mail hosting, online storage, content delivery/CDN/CMS, and system integration; IoT services and solutions in the field of industrial, agriculture, energy, and IoT-oriented mobile communication; industry-specific solution; content delivery; and global/privacy products. In addition, the company offers IT outsourcing, IIJ consulting, cognitive factory, IIJ PC deployment support, IIJ PaaS solution, IIJ EMM utilization support, IIJ private cloud, network solutions, IIJ security audit, IIJ malware analysis, IIJ content management, cloud integration solution for Microsoft and AWS, Microsoft 365 transition support solution, data center service, and data center construction engineering solutions, as well as DX edge services. The company was incorporated in 1992 and is headquartered in Tokyo, Japan.
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