Contrasting Internet Initiative Japan (NASDAQ:IIJI) and FactSet Research Systems (NASDAQ:FDS)
Internet Initiative Japan (NASDAQ:IIJI) and FactSet Research Systems (NYSE:FDS) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, risk and dividends.
This table compares Internet Initiative Japan and FactSet Research Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Internet Initiative Japan||2.01%||8.67%||4.11%|
|FactSet Research Systems||23.30%||64.19%||25.85%|
Internet Initiative Japan pays an annual dividend of $0.05 per share. FactSet Research Systems pays an annual dividend of $2.88 per share and has a dividend yield of 1.1%. Internet Initiative Japan pays out 9.6% of its earnings in the form of a dividend. FactSet Research Systems pays out 33.8% 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. Internet Initiative Japan has raised its dividend for 3 consecutive years and FactSet Research Systems has raised its dividend for 13 consecutive years. FactSet Research Systems is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider and Institutional Ownership
0.5% of Internet Initiative Japan shares are owned by institutional investors. Comparatively, 97.0% of FactSet Research Systems shares are owned by institutional investors. 6.7% of Internet Initiative Japan shares are owned by company insiders. Comparatively, 2.3% of FactSet Research Systems shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This is a breakdown of recent recommendations and price targets for Internet Initiative Japan and FactSet Research Systems, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Internet Initiative Japan||0||0||0||0||N/A|
|FactSet Research Systems||3||9||0||0||1.75|
FactSet Research Systems has a consensus target price of $251.75, indicating a potential downside of 6.34%.
Earnings & Valuation
This table compares Internet Initiative Japan and FactSet Research Systems’ 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||0.00||$45.98 million||$0.52||N/A|
|FactSet Research Systems||$1.35 billion||7.62||$267.08 million||$8.53||31.51|
FactSet Research Systems has lower revenue, but higher earnings than Internet Initiative Japan. Internet Initiative Japan is trading at a lower price-to-earnings ratio than FactSet Research Systems, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Internet Initiative Japan has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, FactSet Research Systems has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.
FactSet Research Systems beats Internet Initiative Japan on 10 of the 13 factors compared between the two stocks.
Internet Initiative Japan Company Profile
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 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 29, 2018, it operated 29 primary points of presence (POP) for dedicated access and 1 universal POP for nationwide dial-up access; 27 Internet data centers; and 1,096 ATMs. The company was founded in 1992 and is headquartered in Tokyo, Japan.
FactSet Research Systems Company Profile
FactSet Research Systems Inc. provides integrated financial information and analytical applications to the investment community in the United States, Europe, and the Asia Pacific. The company delivers insight and information to financial investment professionals through its analytics, services, contents, and technologies. Its applications suite offers tools and resources, including company and industry analyses, full screening tools, portfolio analysis, risk profiles, alpha-testing, portfolio optimization, and research management solutions. The company enables its clients to streamline real-time data and historical information comprising quotes, estimates, news, and commentary, as well as provides proprietary and third-party content through desktop, Web, mobile, and off-platform solutions. It serves portfolio managers, investment research professionals, investment bankers, risk and performance analysts, and wealth advisors. FactSet Research Systems Inc. was founded in 1978 and is headquartered in Norwalk, Connecticut.
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