Sify Technologies (NASDAQ:SIFY) and TrueCar (NASDAQ:TRUE) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.
Dividends
Sify Technologies pays an annual dividend of $0.01 per share and has a dividend yield of 0.6%. TrueCar does not pay a dividend.
Earnings & Valuation
This table compares Sify Technologies and TrueCar’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sify Technologies | $318.04 million | 0.19 | $14.32 million | N/A | N/A |
| TrueCar | $353.57 million | 1.91 | -$28.32 million | ($0.26) | -24.77 |
Sify Technologies has higher earnings, but lower revenue than TrueCar.
Analyst Ratings
This is a summary of current ratings for Sify Technologies and TrueCar, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sify Technologies | 0 | 0 | 1 | 0 | 3.00 |
| TrueCar | 1 | 8 | 0 | 0 | 1.89 |
Sify Technologies currently has a consensus price target of $4.00, indicating a potential upside of 156.41%. TrueCar has a consensus price target of $9.88, indicating a potential upside of 53.44%. Given Sify Technologies’ stronger consensus rating and higher probable upside, research analysts plainly believe Sify Technologies is more favorable than TrueCar.
Institutional & Insider Ownership
5.8% of Sify Technologies shares are held by institutional investors. Comparatively, 95.1% of TrueCar shares are held by institutional investors. 77.0% of Sify Technologies shares are held by insiders. Comparatively, 5.6% of TrueCar shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Risk & Volatility
Sify Technologies has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500. Comparatively, TrueCar has a beta of 2.08, indicating that its share price is 108% more volatile than the S&P 500.
Profitability
This table compares Sify Technologies and TrueCar’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sify Technologies | N/A | N/A | N/A |
| TrueCar | -8.01% | -7.85% | -6.43% |
Summary
Sify Technologies beats TrueCar on 9 of the 13 factors compared between the two stocks.
About Sify Technologies
Sify Technologies Limited provides integrated ICT solutions and services in India and internationally. The company operates in five segments: Telecom Services, Data Center Services, Cloud and Managed Services, Technology Integration Services, and Applications Integration Services. The Telecom Services segment offers Internet protocol based virtual private network services, including intranets, extranets, and remote access applications; and last mile connectivity services. The Data Center Services segment provides co-location, regular backup, server load balancing, and remote backup solutions; messaging, shared hosting, network, and security services; storage and virtualization services; and managed voice services to resident enterprises. The Cloud and Managed Services segment offers on-demand hosting services; and remote and onsite infrastructure management services that manages and supports customer operating systems, applications, and database layers, as well as utility-based on-demand storage service that manages the lifecycle of enterprise information. The Technology Integration Services segment provides data center build, network integration, information security, end user computing, and collaborative tools and solutions. The Applications Integration Services segment offers a range of Web-applications; and operates online portals, including sify.com and samachar.com, which acts as principal entry points and gateway for accessing the Internet, as well as related content sites. Sify Technologies Limited also provides Website design, development, content management, online assessment tools, and search engine optimization services; messaging and collaboration services and solutions; online testing engine and network management services; and online exam engine solutions. The company was formerly known as Sify Limited and changed its name to Sify Technologies Limited in October 2007. The company was founded in 1995 and is headquartered in Chennai, India.
About TrueCar
TrueCar, Inc., together with its subsidiaries, operates as an Internet-based information, technology, and communication services company in the United States. It operates its platform on the TrueCar Website and mobile applications. The company also customizes and operates its platform for its affinity group marketing partners, including financial institutions, membership-based organizations, and employee buying programs for large enterprises. Its platform enables users to obtain market-based pricing data on new and used cars, and to connect with its network of TrueCar certified dealers. In addition, the company offers forecast, consulting, and other services regarding determination of the residual value of an automobile at given future points in time, which are used to underwrite automotive loans and leases, and by financial institutions to measure exposure and risk across loan, lease, and fleet portfolios. Further, it provides geographically specific and real-time pricing information for consumers and dealers; TrueCar Trade, which gives consumers information on the value of their trade-in vehicles and enables them to obtain a guaranteed trade-in price before setting foot in the dealership; DealerSync, a dealer Website creation and management service and a software platform that assists dealers in managing, marketing, and growing their business; and DealerScience that provides dealers with advanced digital retailing software tools. The company was formerly known as Zag.com Inc. TrueCar, Inc. was founded in 2005 and is headquartered in Santa Monica, California.
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