Sify Technologies (NASDAQ:SIFY) and GigaMedia (NASDAQ:GIGM) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.
Institutional and Insider Ownership
5.6% of Sify Technologies shares are owned by institutional investors. Comparatively, 5.3% of GigaMedia shares are owned by institutional investors. 77.0% of Sify Technologies shares are owned by company insiders. Comparatively, 1.0% of GigaMedia 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.
Dividends
Sify Technologies pays an annual dividend of $0.01 per share and has a dividend yield of 0.6%. GigaMedia does not pay a dividend.
Volatility & Risk
Sify Technologies has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, GigaMedia has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Sify Technologies and GigaMedia, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Sify Technologies | 0 | 0 | 1 | 0 | 3.00 |
GigaMedia | 0 | 0 | 0 | 0 | N/A |
Sify Technologies presently has a consensus price target of $4.00, suggesting a potential upside of 142.42%. Given Sify Technologies’ higher possible upside, analysts plainly believe Sify Technologies is more favorable than GigaMedia.
Profitability
This table compares Sify Technologies and GigaMedia’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 |
GigaMedia | -21.56% | -5.49% | -5.07% |
Valuation and Earnings
This table compares Sify Technologies and GigaMedia’s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Sify Technologies | $318.04 million | 0.20 | $14.32 million | N/A | N/A |
GigaMedia | $11.60 million | 2.76 | $1.08 million | N/A | N/A |
Sify Technologies has higher revenue and earnings than GigaMedia.
Summary
Sify Technologies beats GigaMedia on 11 of the 12 factors compared between the two stocks.
About Sify Technologies
About GigaMedia
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