Internet Initiative Japan (OTCMKTS:IIJIY) versus BuzzFeed (NASDAQ:BZFD) Head to Head Contrast

Internet Initiative Japan (OTCMKTS:IIJIY) and BuzzFeed (NASDAQ:BZFD) are both communication services companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Volatility and Risk

Internet Initiative Japan has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, BuzzFeed has a beta of 3.88, meaning that its share price is 288% more volatile than the S&P 500.

Institutional & Insider Ownership

37.6% of BuzzFeed shares are owned by institutional investors. 6.7% of Internet Initiative Japan shares are owned by company insiders. Comparatively, 15.6% of BuzzFeed shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Internet Initiative Japan and BuzzFeed’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Internet Initiative Japan	6.79%	15.74%	7.15%
BuzzFeed	-35.83%	-113.86%	-34.00%

Valuation and Earnings

This table compares Internet Initiative Japan and BuzzFeed”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Internet Initiative Japan	$2.29 billion	1.77	$159.64 million	$1.82	24.32
BuzzFeed	$170.71 million	0.57	-$57.72 million	($1.54)	-0.76

Internet Initiative Japan has higher revenue and earnings than BuzzFeed. BuzzFeed is trading at a lower price-to-earnings ratio than Internet Initiative Japan, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations for Internet Initiative Japan and BuzzFeed, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Internet Initiative Japan	0	1	0	0	2.00
BuzzFeed	1	1	0	0	1.50

BuzzFeed has a consensus target price of $1.00, indicating a potential downside of 14.53%. Given BuzzFeed’s higher probable upside, analysts clearly believe BuzzFeed is more favorable than Internet Initiative Japan.

Summary

Internet Initiative Japan beats BuzzFeed on 9 of the 13 factors compared between the two stocks.

About Internet Initiative Japan

Internet Initiative Japan Inc. provides Internet connectivity, WAN, outsourcing, systems integration, and network-related equipment sales services in Japan. It operates through two segments, Network Services and Systems Integration Business, and ATM Operation Business. The company offers mobile communication and remote access/telework services; WAN/network services, including SDN, multi-cloud network, closed connection, internet VPN, SEIL, remote access, wireless LAN, and GIGA-school; leased line and broadband services; IIJ DNS platform, and domain name registration and maintenance services; IIJ access ID management, dial-up access, and IIJ IPv6 fiber access services; and security solutions for IIJ managed firewall, DDoS protection, and managed IPS/IDS services. It also provides cloud solutions, such as HaaS/IaaS, cloud storage, monitoring/operation, virtual desktop, Paas/Saas, solution for Microsoft and AWS, IoT/M2M, ID management and authentication, network, global, mobile, license, and specialized solutions, as well as IIJ cloud exchange and IIJ cloud integration solutions; integrated, network, mail, and web security, endpoint, security assessment/consulting, web and mail hosting, online storage, content delivery/CDN/CMS, and system integration; IoT services and solutions in the field of industrial, agriculture, energy, and IoT-oriented mobile communication; industry-specific solution; content delivery; and global/privacy products. In addition, the company offers IT outsourcing, IIJ consulting, cognitive factory, IIJ PC deployment support, IIJ PaaS solution, IIJ EMM utilization support, IIJ private cloud, network solutions, IIJ security audit, IIJ malware analysis, IIJ content management, cloud integration solution for Microsoft and AWS, Microsoft 365 transition support solution, data center service, and data center construction engineering solutions, as well as DX edge services. The company was incorporated in 1992 and is headquartered in Tokyo, Japan.

About BuzzFeed

BuzzFeed, Inc., a digital media company, distributes content across owned and operated, as well as third-party platforms. The company offers BuzzFeed, a go-to authority for entertainment, pop culture, and Internet with articles, lists, quizzes, videos, and original series; BuzzFeed News, a pocket friendly newsroom; Tasty, a platform for food content; HuffPost, media platform for news, politics, opinion, entertainment, features, and lifestyle content. It also provides display, programmatic, and video advertising on its owned and operated sites and applications. BuzzFeed, Inc. is headquartered in New York, New York.