Critical Survey: Internet Initiative Japan (OTCMKTS:IIJIY) & Pluralsight (OTCMKTS:PS)

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

Profitability

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

Net Margins Return on Equity Return on Assets
Internet Initiative Japan 2.06% 8.92% 3.91%
Pluralsight -28.32% -47.43% -16.25%



Insider & Institutional Ownership

0.0% of Internet Initiative Japan shares are held by institutional investors. Comparatively, 78.5% of Pluralsight shares are held by institutional investors. 6.7% of Internet Initiative Japan shares are held by company insiders. Comparatively, 23.2% of Pluralsight shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Internet Initiative Japan has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, Pluralsight has a beta of 2.29, meaning that its share price is 129% more volatile than the S&P 500.

Dividends

Internet Initiative Japan pays an annual dividend of $0.10 per share and has a dividend yield of 0.9%. Pluralsight does not pay a dividend. Internet Initiative Japan pays out 28.6% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Internet Initiative Japan and Pluralsight, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Internet Initiative Japan 0 0 0 0 N/A
Pluralsight 0 1 8 0 2.89

Pluralsight has a consensus target price of $27.60, suggesting a potential upside of 56.89%. Given Pluralsight’s higher probable upside, analysts clearly believe Pluralsight is more favorable than Internet Initiative Japan.

Earnings and Valuation

This table compares Internet Initiative Japan and Pluralsight’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Internet Initiative Japan $1.74 billion 0.60 $24.44 million $0.35 33.11
Pluralsight $232.03 million 10.61 -$97.11 million ($1.46) -12.05

Internet Initiative Japan has higher revenue and earnings than Pluralsight. Pluralsight 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.

Summary

Internet Initiative Japan beats Pluralsight on 8 of the 15 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 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.

About Pluralsight

Pluralsight, Inc. provides a technology skill development solutions worldwide. Its cloud-based technology skills platform offers a range of tools, including skill and role assessment tool, which uses machine learning and advanced algorithms to measure a user's skills, benchmark that user against others in the industry, and recommend opportunities for growth; and Course Library that include a digital ecosystem of thousands of on-demand courses across a range of technology subject areas, such as cloud, mobile, security, IT, and data. The company's platform also provides Learning Paths that are personalized to take users through a set of courses designed to help them master a particular subject area based on either an assessment or a user's goals; and business analytics tools, which enable business customers to evaluate the technology skills of their teams, align learning to key business objectives, determine the usage of platform, examine trends in skill development, and quantify the impact of platform on their business. It serves businesses and individuals. Pluralsight, Inc. was founded in 2004 and is headquartered in Farmington, Utah.

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