Critical Survey: Internet Initiative Japan (OTCMKTS:IIJIY) vs. Rumble (NASDAQ:RUM)

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

Risk and Volatility

Internet Initiative Japan has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, Rumble has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500.

Institutional & Insider Ownership

26.2% of Rumble shares are held by institutional investors. 6.7% of Internet Initiative Japan shares are held by company insiders. Comparatively, 72.9% of Rumble shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for Internet Initiative Japan and Rumble, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Internet Initiative Japan	0	0	0	0	N/A
Rumble	0	2	0	0	2.00

Rumble has a consensus price target of $8.00, indicating a potential upside of 56.25%. Given Rumble’s higher possible upside, analysts plainly believe Rumble is more favorable than Internet Initiative Japan.

Earnings and Valuation

This table compares Internet Initiative Japan and Rumble’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Internet Initiative Japan	$1.91 billion	1.93	$136.83 million	$1.53	26.34
Rumble	$80.96 million	24.60	-$116.42 million	($0.64)	-8.00

Internet Initiative Japan has higher revenue and earnings than Rumble. Rumble 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Internet Initiative Japan	6.85%	15.94%	7.27%
Rumble	-163.37%	-54.31%	-44.57%

Summary

Internet Initiative Japan beats Rumble on 7 of the 12 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 Rumble

Rumble Inc. operates video sharing platforms in the United States, Canada, and internationally. The company operates rumble.com, a free-to-use video sharing and livestreaming platform where users can subscribe to channels to stay in touch with creators, and access video on-demand (VOD) and live content streamed by creators. It also operates locals.com, a platform where users can access free content and purchase subscriptions to support creators and access exclusive content in creator communities; Rumble Streaming Marketplace, a patent-pending application designed to enable a first-of-its-kind livestreaming and monetization service for creators; and Rumble Advertising Center (RAC), an online advertising management exchange. The company was founded in 2013 and is headquartered in Longboat Key, Florida.