Analyzing Internet Initiative Japan (OTCMKTS:IIJIY) and ZoomInfo Technologies (NASDAQ:ZI)

ZoomInfo Technologies (NASDAQ:ZI) and Internet Initiative Japan (OTCMKTS:IIJIY) are both communication services companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, dividends, analyst recommendations, earnings and institutional ownership.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZoomInfo Technologies	$1.21 billion	1.05	$107.30 million	$0.12	31.00
Internet Initiative Japan	$2.29 billion	1.67	$159.64 million	$1.82	23.01

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for ZoomInfo Technologies and Internet Initiative Japan, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZoomInfo Technologies	2	2	1	0	1.80
Internet Initiative Japan	0	1	0	0	2.00

ZoomInfo Technologies presently has a consensus price target of $5.50, suggesting a potential upside of 47.85%. Given ZoomInfo Technologies’ higher possible upside, equities research analysts plainly believe ZoomInfo Technologies is more favorable than Internet Initiative Japan.

Risk and Volatility

ZoomInfo Technologies has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500. Comparatively, Internet Initiative Japan has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500.

Institutional & Insider Ownership

95.5% of ZoomInfo Technologies shares are held by institutional investors. 9.0% of ZoomInfo Technologies 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 endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ZoomInfo Technologies	0.74%	12.05%	3.46%
Internet Initiative Japan	6.79%	15.75%	7.19%

Summary

Internet Initiative Japan beats ZoomInfo Technologies on 9 of the 14 factors compared between the two stocks.

About ZoomInfo Technologies

ZoomInfo Technologies Inc., together with its subsidiaries, provides go-to-market intelligence and engagement platform for sales and marketing teams in the United States and internationally. The company's cloud-based platform provides information on organizations and professionals to help users identify target customers and decision makers, obtain continually updated predictive lead and company scoring, monitor buying signals and other attributes of target companies, craft messages, engage through automated sales tools, and track progress through the deal cycle. It serves enterprises, mid-market companies, and down to small businesses that operate in various industry, including software, business services, manufacturing, telecommunications, financial services, media and internet, transportation, education, hospitality, and real estate. The company was founded in 2007 and is headquartered in Vancouver, Washington.

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.