Cardlytics (NASDAQ:CDLX) and Sify Technologies (NASDAQ:SIFY) are both small-cap business services companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Cardlytics and Sify Technologies, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cardlytics | 0 | 0 | 7 | 0 | 3.00 |
| Sify Technologies | 0 | 0 | 1 | 0 | 3.00 |
Cardlytics presently has a consensus target price of $23.17, indicating a potential upside of 44.88%. Sify Technologies has a consensus target price of $4.00, indicating a potential upside of 145.40%. Given Sify Technologies’ higher probable upside, analysts clearly believe Sify Technologies is more favorable than Cardlytics.
Earnings and Valuation
This table compares Cardlytics and Sify Technologies’ gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cardlytics | $150.68 million | 2.15 | -$53.04 million | ($2.14) | -7.47 |
| Sify Technologies | $318.04 million | 0.20 | $14.32 million | N/A | N/A |
Sify Technologies has higher revenue and earnings than Cardlytics.
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.
Insider and Institutional Ownership
80.9% of Cardlytics shares are owned by institutional investors. Comparatively, 5.8% of Sify Technologies shares are owned by institutional investors. 77.0% of Sify Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares Cardlytics and Sify Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cardlytics | -35.20% | -92.07% | -28.17% |
| Sify Technologies | N/A | N/A | N/A |
Summary
Sify Technologies beats Cardlytics on 8 of the 11 factors compared between the two stocks.
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.
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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