Financial Comparison: PubMatic (NASDAQ:PUBM) vs. Internet Initiative Japan (OTCMKTS:IIJIY)

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

Risk & Volatility

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

Insider & Institutional Ownership

64.3% of PubMatic shares are held by institutional investors. 6.7% of Internet Initiative Japan shares are held by company insiders. Comparatively, 2.9% of PubMatic shares are held 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.

Profitability

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

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

Earnings and Valuation

This table compares Internet Initiative Japan and PubMatic”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Internet Initiative Japan	$1.91 billion	1.90	$136.83 million	$1.42	27.92
PubMatic	$267.01 million	2.73	$8.88 million	$0.31	47.35

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.

Analyst Ratings

This is a summary of current recommendations and price targets for Internet Initiative Japan and PubMatic, as provided by MarketBeat.com.

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

PubMatic has a consensus price target of $21.71, suggesting a potential upside of 47.92%. Given PubMatic’s stronger consensus rating and higher probable upside, analysts clearly believe PubMatic is more favorable than Internet Initiative 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.

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.