PubMatic (NASDAQ:PUBM) versus Internet Initiative Japan (OTCMKTS:IIJIY) Financial Contrast

PubMatic (NASDAQ:PUBM) and Internet Initiative Japan (OTCMKTS:IIJIY) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PubMatic	5.96%	6.12%	2.58%
Internet Initiative Japan	6.46%	15.21%	6.97%

Institutional and Insider Ownership

64.3% of PubMatic shares are held by institutional investors. 2.9% of PubMatic 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 large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

PubMatic has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500. Comparatively, Internet Initiative Japan has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for PubMatic and Internet Initiative Japan, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PubMatic	0	3	5	0	2.63
Internet Initiative Japan	0	0	0	0	0.00

PubMatic currently has a consensus price target of $21.71, indicating a potential upside of 47.92%. Given PubMatic’s stronger consensus rating and higher possible upside, equities analysts plainly believe PubMatic is more favorable than Internet Initiative Japan.

Valuation & Earnings

This table compares PubMatic 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
PubMatic	$267.01 million	2.73	$8.88 million	$0.31	47.35
Internet Initiative Japan	$1.91 billion	1.90	$136.83 million	$1.42	27.92

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

About PubMatic

PubMatic, Inc., a technology company, engages in the provision of a cloud infrastructure platform that enables real-time programmatic advertising transactions for digital content creators, advertisers, agencies, agency trading desks, and demand side platforms worldwide. Its PubMatic SSP, a sell-side platform, used for the purchase and sale of digital advertising inventory for publishers and buyers. The company also provides solutions, including OpenWrap, a header bidding solution; Openwrap OTT, a prebid-powered unified bidding solution; Openwrap SDK, an enterprise-grade management tools and analytics; Connect, a solution that provides additional data and insights to publishers and buyers; Activate, which allows buyers to execute direct deals on its platform across publisher inventory; Convert, a commerce media solution; and Identity Hub, an ID management tool for publishers that leverages specialized technology?infrastructure?to simplify the complex alternative identifier marketplace. Its platform supports an array of ad formats and digital device types, including mobile app, mobile web, desktop, display, video, over-the-top (OTT), connected television, and media. The company was incorporated in 2006 and is based in Redwood City, California.

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.