GigaMedia (NASDAQ:GIGM) and Sify Technologies (NASDAQ:SIFY) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, earnings, profitability, dividends, valuation and analyst recommendations.
Insider and Institutional Ownership
5.3% of GigaMedia shares are held by institutional investors. Comparatively, 5.6% of Sify Technologies shares are held by institutional investors. 1.0% of GigaMedia shares are held by insiders. Comparatively, 77.0% of Sify Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares GigaMedia and Sify Technologies’ net margins, return on equity and return on assets.
Net Margins
Return on Equity
Return on Assets
GigaMedia
-21.56%
-5.49%
-5.07%
Sify Technologies
N/A
N/A
N/A
Earnings and Valuation
This table compares GigaMedia and Sify Technologies’ revenue, earnings per share and valuation.
Gross Revenue
Price/Sales Ratio
Net Income
Earnings Per Share
Price/Earnings Ratio
GigaMedia
$11.60 million
2.74
$1.08 million
N/A
N/A
Sify Technologies
$318.04 million
0.20
$14.32 million
N/A
N/A
Sify Technologies has higher revenue and earnings than GigaMedia.
Analyst Ratings
This is a summary of current recommendations and price targets for GigaMedia and Sify Technologies, as provided by MarketBeat.
Sell Ratings
Hold Ratings
Buy Ratings
Strong Buy Ratings
Rating Score
GigaMedia
0
0
0
0
N/A
Sify Technologies
0
0
1
0
3.00
Sify Technologies has a consensus target price of $4.00, suggesting a potential upside of 143.90%. Given Sify Technologies’ higher possible upside, analysts plainly believe Sify Technologies is more favorable than GigaMedia.
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.
Risk and Volatility
GigaMedia has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500. Comparatively, Sify Technologies has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500.
Summary
Sify Technologies beats GigaMedia on 11 of the 12 factors compared between the two stocks.
About GigaMedia
GigaMedia Limited provides digital entertainment services in Taiwan, Hong Kong, and Macau. The company offers mobile and browser-based casual games through FunTown-branded platform. Its portfolio of PC-based casual games include MahJong, a traditional Chinese tile game; sports games, Web-based RPG, and mobile games; online card games; and chance-based games, including bingo, lotto, horse racing, Sic-Bo, slots, and various casual games. The company also provides Tales Runner, a multi-player online obstacle running game in which players competes by running, jumping, dashing and using items. In addition, it owns and operates GigaCloud, a provider of cloud computing solutions and related services focused on the cloud services market for SMEs in Taiwan. GigaMedia Limited was founded in 1997 and is headquartered in Taipei, Taiwan.
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.
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