Sify Technologies (NASDAQ:SIFY) and GigaMedia (NASDAQ:GIGM) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, risk, earnings, dividends and valuation.
Volatility & Risk
Sify Technologies has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500. Comparatively, GigaMedia has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500.
Valuation & Earnings
This table compares Sify Technologies and GigaMedia’s revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Sify Technologies | $318.04 million | 0.20 | $14.32 million | N/A | N/A |
GigaMedia | $11.60 million | 2.73 | $1.08 million | N/A | N/A |
Sify Technologies has higher revenue and earnings than GigaMedia.
Profitability
This table compares Sify Technologies and GigaMedia’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Sify Technologies | N/A | N/A | N/A |
GigaMedia | -21.56% | -5.49% | -5.07% |
Institutional & Insider Ownership
5.5% of Sify Technologies shares are owned by institutional investors. Comparatively, 5.3% of GigaMedia shares are owned by institutional investors. 77.0% of Sify Technologies shares are owned by insiders. Comparatively, 1.0% of GigaMedia shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Dividends
Sify Technologies pays an annual dividend of $0.01 per share and has a dividend yield of 0.6%. GigaMedia does not pay a dividend.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Sify Technologies and GigaMedia, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Sify Technologies | 0 | 0 | 1 | 0 | 3.00 |
GigaMedia | 0 | 0 | 0 | 0 | N/A |
Sify Technologies presently has a consensus target price of $4.00, indicating a potential upside of 148.45%. Given Sify Technologies’ higher possible upside, equities analysts clearly believe Sify Technologies is more favorable than GigaMedia.
Summary
Sify Technologies beats GigaMedia on 11 of the 12 factors compared between the two stocks.
Sify Technologies Company Profile
GigaMedia Company Profile
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