Sohu.com (NASDAQ:SOHU – Get Free Report) and Internet Initiative Japan (OTCMKTS:IIJIY – Get Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.
Insider & Institutional Ownership
33.0% of Sohu.com shares are owned by institutional investors. 21.1% of Sohu.com shares are owned by insiders. Comparatively, 6.7% of Internet Initiative Japan shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Sohu.com and Internet Initiative Japan, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sohu.com | 0 | 1 | 1 | 0 | 2.50 |
| Internet Initiative Japan | 0 | 0 | 0 | 1 | 4.00 |
Volatility & Risk
Sohu.com has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500. Comparatively, Internet Initiative Japan has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.
Profitability
This table compares Sohu.com and Internet Initiative Japan’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sohu.com | 22.70% | -6.37% | -3.74% |
| Internet Initiative Japan | 6.32% | 14.55% | 6.64% |
Valuation and Earnings
This table compares Sohu.com and Internet Initiative Japan”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sohu.com | $594.65 million | 0.75 | -$100.27 million | $4.17 | 3.57 |
| Internet Initiative Japan | $2.08 billion | 1.57 | $131.56 million | $1.52 | 23.47 |
Internet Initiative Japan has higher revenue and earnings than Sohu.com. Sohu.com 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 Sohu.com on 9 of the 15 factors compared between the two stocks.
About Sohu.com
Sohu.com Limited engages in the provision of online media, video, and game products and services on personal computers (PCs) and mobile devices in China. It operates through two segments: Sohu and Changyou. The company offers online news, information, and content services through the mobile phone application Sohu News APP, mobile portal m.sohu.com, and www.sohu.com for PCs; and online video content and services through mobile phone application Sohu Video APP and tv.sohu.com, as well as ifox, a video application for PC. It also operates Focus (www.focus.cn), which provides online real estate information and services; and 17173.com website, which provides news, electronic forums, online videos, and other online game information services to game players, as well as offers mobile game distribution services. In addition, the company offers interactive online games for PCs and mobile devices. Further, it provides paid subscription and interactive broadcasting services. The company was incorporated in 1996 and is headquartered in Beijing, China.
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.
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