Financial Comparison: Sify Technologies (NASDAQ:SIFY) & PubMatic (NASDAQ:PUBM)

PubMatic (NASDAQ:PUBM) and Sify Technologies (NASDAQ:SIFY) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.

Volatility and Risk

PubMatic has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500. Comparatively, Sify Technologies has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500.

Valuation and Earnings

This table compares PubMatic and Sify Technologies”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	2.82	$8.88 million	$0.31	50.94
Sify Technologies	$36.51 billion	0.00	$590,000.00	N/A	N/A

PubMatic has higher earnings, but lower revenue than Sify Technologies.

Profitability

This table compares PubMatic and Sify Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PubMatic	5.96%	6.12%	2.58%
Sify Technologies	-0.08%	-0.40%	-0.14%

Analyst Ratings

This is a summary of current recommendations and price targets for PubMatic and Sify Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PubMatic	0	3	5	0	2.63
Sify Technologies	0	0	0	0	0.00

PubMatic currently has a consensus target price of $21.71, suggesting a potential upside of 37.52%. Given PubMatic’s stronger consensus rating and higher possible upside, research analysts clearly believe PubMatic is more favorable than Sify Technologies.

Insider and Institutional Ownership

64.3% of PubMatic shares are owned by institutional investors. Comparatively, 0.6% of Sify Technologies shares are owned by institutional investors. 2.9% of PubMatic shares are owned by company insiders. Comparatively, 77.0% of Sify Technologies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

PubMatic beats Sify Technologies on 9 of the 12 factors compared between 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 Sify Technologies

Sify Technologies Limited offers ICT solutions and services in India and internationally. It operates through Network Centric Services, Data Center Services, and Digital Services segments. The company offers internet, internet protocol, multi-protocol label switching, virtual private network, SDWAN, managed Wi-Fi, internet of things, wholesale and retail voice, dedicated internet access, and proactive monitoring and management of the network and devices. It provides co-location services; and managed hosting services, such as storage, back-up management, performance monitoring, infrastructure monitoring and management, network availability, server load balancing, managed shared firewall, web server log reporting, and remote and smart hands services. In addition, it offers managed network services; EDGE services; cloud and managed services, including infrastructure as a service, platform as a service, virtual private data center, computing services, IT platform, backup and recovery solution, and content delivery network; remote and onsite infrastructure managed services; and managed security services. Further, the company provides technology integration services; application integration services, which includes talent management, supply chain management, web portal solutions content services, portal development and maintenance, eLearning, digital signature, SAP, Microsoft, Oracle services. The company was formerly known as Sify Limited and changed its name to Sify Technologies Limited in October 2007. Sify Technologies Limited was incorporated in 1995 and is headquartered in Chennai, India. Sify Technologies Limited is a subsidiary of Ramanand Core Investment Company Private Limited.