Sify Technologies (NASDAQ:SIFY) and Cardlytics (NASDAQ:CDLX) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.
Dividends
Sify Technologies pays an annual dividend of $0.01 per share and has a dividend yield of 0.6%. Cardlytics does not pay a dividend.
Risk and Volatility
Sify Technologies has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, Cardlytics has a beta of 3.62, suggesting that its stock price is 262% more volatile than the S&P 500.
Earnings and Valuation
This table compares Sify Technologies and Cardlytics’ gross 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 |
| Cardlytics | $150.68 million | 2.26 | -$53.04 million | ($2.14) | -7.85 |
Sify Technologies has higher revenue and earnings than Cardlytics.
Insider & Institutional Ownership
5.8% of Sify Technologies shares are held by institutional investors. Comparatively, 80.9% of Cardlytics shares are held by institutional investors. 77.0% of Sify Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Sify Technologies and Cardlytics’ 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 |
| Cardlytics | -35.20% | -92.07% | -28.17% |
Analyst Ratings
This is a summary of recent ratings for Sify Technologies and Cardlytics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sify Technologies | 0 | 0 | 1 | 0 | 3.00 |
| Cardlytics | 0 | 0 | 7 | 0 | 3.00 |
Sify Technologies currently has a consensus target price of $4.00, suggesting a potential upside of 154.78%. Cardlytics has a consensus target price of $23.17, suggesting a potential upside of 37.90%. Given Sify Technologies’ higher possible upside, equities research analysts clearly believe Sify Technologies is more favorable than Cardlytics.
Summary
Sify Technologies beats Cardlytics on 8 of the 12 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 Cardlytics
Cardlytics, Inc. operates a purchase intelligence platform in the United States and the United Kingdom. It operates in two segments, Cardlytics Direct and Other Platform Solutions. The company’s platform is the Cardlytics Direct solution, a proprietary native bank advertising channel that enables marketers to reach consumers through their trusted and frequently visited online and mobile banking channels. It also provides solutions that enable marketers and marketing service providers to leverage the power of purchase intelligence outside the banking channel. The company was founded in 2008 and is headquartered in Atlanta, Georgia.
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