Critical Analysis: DeNA (OTCMKTS:DNACF) and Internet Initiative Japan (OTCMKTS:IIJIY)

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for DeNA and Internet Initiative Japan, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DeNA	0	0	0	0	0.00
Internet Initiative Japan	0	0	0	1	4.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DeNA	18.81%	13.06%	8.72%
Internet Initiative Japan	6.32%	14.55%	6.64%

Volatility and Risk

DeNA has a beta of -0.27, meaning that its share price is 127% less volatile than the S&P 500. Comparatively, Internet Initiative Japan has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DeNA	$1.08 billion	1.53	$159.67 million	$1.96	7.53
Internet Initiative Japan	$2.08 billion	1.63	$131.56 million	$1.52	24.34

DeNA has higher earnings, but lower revenue than Internet Initiative Japan. DeNA 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.

Summary

Internet Initiative Japan beats DeNA on 7 of the 11 factors compared between the two stocks.

About DeNA

DeNA Co., Ltd. develops and operates mobile and online services worldwide. It operates Mobage, an entertainment platform; Yahoo! Mobage, which offers social games for PC browsers; AndApp, a platform that allows users to play mobile game apps on PC browsers under the same user account; Pococha, a social live streaming community; and IRIAM, an app which allows to livestream as an anime character. The company also operates SHOWROOM, a virtual stage where fans can watch their artists perform live while interacting with them in real time; MYCODE, a direct-to-consumer genetic testing service; kencom, which supports health insurance societies to manage their members’ health data; Haretoke, a web service which provides daily support for millennial women; Caradamo that offers diet support; and ONSEI, an app that uses AI to check for changes in cognitive function. In addition, it operates MENKYO, which enables cognitive function test for elderly drivers seeking license renewal; SHINRI-ADAS, a cognitive functional test; MRI-TAISEKI, a system that analyses brain DICOM images; Join, a communication app for medical professionals; MySOS, a life-saving and health support app with health and medical record for the user and their family; and DENA SPORTS GROUP, Yokohama DeNA Baystars, Kawasaki Brave Thunders, S.C.SAGAMIHARA, and DeNA Athletics Elite sports teams. Further, the company operates Mobaoku, which allows users to manage their auction items and bids from mobile phones; Anyca, a mobile app for peer-to-peer car sharing; SOMPO DE NORU, a car leasing service; GO, a taxi dispatch app; DRIVE CHART, an accident reduction support service; anone, a c ommunication service for seniors; dot-i, a security system; Coopel, a cloud robotic process automation service; PLAYBACK 9, a NFT service; Easy Ride, a robo-vehicle mobility service; Manga Box, a weekly manga magazine app; PICKFIVE, a NFT card game; and NFT collections. The company was incorporated in 1999 and is based in Tokyo, Japan.

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.