Contrasting Rakuten (OTCMKTS:RKUNY) & Sify Technologies (NASDAQ:SIFY)

Rakuten (OTCMKTS:RKUNY) and Sify Technologies (NASDAQ:SIFY) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, dividends, valuation, profitability, institutional ownership, risk and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Rakuten and Sify Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rakuten	0	0	0	2	4.00
Sify Technologies	0	0	0	0	0.00

Institutional & Insider Ownership

0.6% of Sify Technologies shares are owned by institutional investors. 77.0% of Sify Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Rakuten and Sify Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rakuten	-8.85%	-18.83%	-0.82%
Sify Technologies	-2.83%	-11.45%	-2.83%

Risk & Volatility

Rakuten has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, Sify Technologies has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.

Earnings and Valuation

This table compares Rakuten and Sify Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rakuten	$15.07 billion	0.93	-$1.07 billion	($0.65)	-9.97
Sify Technologies	$471.80 million	1.79	-$9.17 million	$0.04	291.75

Sify Technologies has lower revenue, but higher earnings than Rakuten. Rakuten is trading at a lower price-to-earnings ratio than Sify Technologies, indicating that it is currently the more affordable of the two stocks.

Summary

Sify Technologies beats Rakuten on 8 of the 13 factors compared between the two stocks.

About Rakuten

Rakuten Group, Inc. provides services in e-commerce, fintech, digital content, and communications to various users in Japan and internationally. The company operates through three segments: Internet Services, FinTech, and Mobile. The Internet Services segment provides range of e-commerce sites, such as Rakuten Ichiba, an Internet shopping mall, online cash-back sites, travel booking sites, portal sites, and digital content sites. It also offers messaging services and sells advertising; and manages professional sport teams. The FinTech segment offers financial services over the internet related to banking and securities, credit cards, life insurance, general insurance, electronic payment business, crypto asset (virtual currency) spot transaction, etc. The Mobile segment provides communication services and technology, electricity supply, and digital content site services. The company was formerly known as Rakuten, Inc. and changed its name to Rakuten Group, Inc. in April 2021. Rakuten Group, Inc. was incorporated in 1997 and is headquartered in Setagaya, Japan.

About Sify Technologies

Sify Technologies Limited offers ICT solutions and services in India and internationally. It operates through Network Centric Services, Data Center Services, and Digital Services segments. The company offers internet, internet protocol, multi-protocol label switching, virtual private network, SDWAN, managed Wi-Fi, internet of things, wholesale and retail voice, dedicated internet access, and proactive monitoring and management of the network and devices. It provides co-location services; and managed hosting services, such as storage, back-up management, performance monitoring, infrastructure monitoring and management, network availability, server load balancing, managed shared firewall, web server log reporting, and remote and smart hands services. In addition, it offers managed network services; EDGE services; cloud and managed services, including infrastructure as a service, platform as a service, virtual private data center, computing services, IT platform, backup and recovery solution, and content delivery network; remote and onsite infrastructure managed services; and managed security services. Further, the company provides technology integration services; application integration services, which includes talent management, supply chain management, web portal solutions content services, portal development and maintenance, eLearning, digital signature, SAP, Microsoft, Oracle services. The company was formerly known as Sify Limited and changed its name to Sify Technologies Limited in October 2007. Sify Technologies Limited was incorporated in 1995 and is headquartered in Chennai, India. Sify Technologies Limited is a subsidiary of Ramanand Core Investment Company Private Limited.