Analyzing Zoom Video Communications (NASDAQ:ZM) and Internet Initiative Japan (NASDAQ:IIJIY)

Zoom Video Communications (NASDAQ:ZM) and Internet Initiative Japan (OTCMKTS:IIJIY) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Valuation & Earnings

This table compares Zoom Video Communications and Internet Initiative Japan’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Zoom Video Communications N/A N/A N/A N/A N/A
Internet Initiative Japan $1.74 billion 0.64 $24.44 million $0.35 35.00

Internet Initiative Japan has higher revenue and earnings than Zoom Video Communications.

Profitability

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

Net Margins Return on Equity Return on Assets
Zoom Video Communications N/A N/A N/A
Internet Initiative Japan 2.06% 8.92% 3.91%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Zoom Video Communications and Internet Initiative Japan, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zoom Video Communications 2 14 6 0 2.18
Internet Initiative Japan 0 0 0 0 N/A

Zoom Video Communications currently has a consensus target price of $81.26, suggesting a potential upside of 27.88%. Given Zoom Video Communications’ higher possible upside, equities research analysts clearly believe Zoom Video Communications is more favorable than Internet Initiative Japan.

Insider and Institutional Ownership

10.4% of Zoom Video Communications shares are owned by institutional investors. 6.7% of Internet Initiative Japan shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Internet Initiative Japan beats Zoom Video Communications on 5 of the 8 factors compared between the two stocks.

Zoom Video Communications Company Profile

Zoom Video Communications, Inc. provides a video-first communications platform that delivers changes how people interact primarily in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. It connects people through frictionless video, voice, chat, and content sharing. The company's cloud-native platform enables face-to-face video experiences and connects users across various devices and locations in a single meeting. It serves education, entertainment/media, enterprise infrastructure, finance, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries, as well as individuals. The company was formerly known as Zoom Communications, Inc. and changed its name to Zoom Video Communications, Inc. in May 2012. Zoom Video Communications, Inc. was founded in 2011 and is headquartered in San Jose, California.

Internet Initiative Japan Company Profile

Internet Initiative Japan Inc. offers Internet connectivity, WAN, outsourcing, systems integration, and equipment sales services in Japan. It operates in two segments, Network Services and Systems Integration Business, and ATM Operation Business. The company's Internet connectivity services for enterprise include IP services and IIJ data center connectivity services, IIJ FiberAccess/F and IIJ DSL/F services, IIJ mobile services, and dial-up access services, as well as other Internet connectivity services comprising IIJ ISDN/F and IIJ line management/F services. Its Internet connectivity services for consumers consist of various service, including ADSL, fiber optic, WiMAX, 3G, and LTE wireless data communication services under the IIJmio and hi-ho brand names. The company also offers WAN services, a closed network service primarily using dedicated lines, as well as wide-area Ethernet services and IP-VPN services to corporate customers; outsourcing services that comprise security-related, network-related, server-related, data center-related, and IIJ GIO/Hosting package services for non-customizable hosting package cloud computing services; and customer support and help desk solutions, and IP phone services. In addition, it provides systems integration services, which include consulting, project planning, systems design, and development of network systems, which focus on Internet business systems, and Intranet and Extranet corporate information systems; and systems operation and maintenance services. Further, the company sells routers, iPads, and other equipment, as well as software; and provides automated teller machine (ATM) services. As of June 29, 2018, it operated 29 primary points of presence (POP) for dedicated access and 1 universal POP for nationwide dial-up access; 27 Internet data centers; and 1,096 ATMs. The company was founded in 1992 and is headquartered in Tokyo, Japan.

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