Internet Initiative Japan (OTCMKTS:IIJIY) versus NAVER (OTCMKTS:NHNCF) Head-To-Head Contrast

NAVER (OTCMKTS:NHNCF) and Internet Initiative Japan (OTCMKTS:IIJIY) are both communication services companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.

Dividends

NAVER pays an annual dividend of $587.20 per share and has a dividend yield of 510.6%. Internet Initiative Japan pays an annual dividend of $0.34 per share and has a dividend yield of 0.8%. NAVER pays out 4.1% of its earnings in the form of a dividend. Internet Initiative Japan pays out 18.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. NAVER is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NAVER	N/A	N/A	N/A	$14,217.46	0.01
Internet Initiative Japan	$2.29 billion	1.78	$159.64 million	$1.80	24.73

Internet Initiative Japan has higher revenue and earnings than NAVER. NAVER 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 NAVER and Internet Initiative Japan’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NAVER	N/A	N/A	N/A
Internet Initiative Japan	6.97%	15.69%	7.19%

Analyst Recommendations

This is a summary of current recommendations and price targets for NAVER and Internet Initiative Japan, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NAVER	0	0	0	0	0.00
Internet Initiative Japan	0	1	0	1	3.00

Summary

Internet Initiative Japan beats NAVER on 7 of the 10 factors compared between the two stocks.

About NAVER

NAVER Corporation, together with its subsidiaries, provides internet and online search portal, and mobile messenger platform services in South Korea, Japan, and internationally. The company offers NAVER, a search portal that offers various content topic boards; LINE, a messaging application; Naver Clova, an integrated AI platform; Papago, an automated interpretation application; WHALE, a web browser; Naver Map, a navigation application; Webtoon, a promotion system for mobile comics; SERIES, a paid content platform; BAND, a mobile community platform; NOW, an audio shows to listen to on NAVER app; SNOW, a photo and video messenger; and NAVER WORKS, which provides features necessary for work, such as Message, Mail, Calendar, and Drive. It also provides IT platforms, BIZ platforms, advertising services, and NAVER business school for businesses; NAVER Webtoon, NAVER Webnovel, NAVER Blog Official Blog, NAVER AudioClip, Series, Premium Contents, Grafolio, NAVER Post, NAVER TV, NAVER Influencer Center, Creator Advisor, and VIBE for creators; and NAVER D2 Startup Factory, DEVIEW, NAVER D2, NAVER Open Source, CLOVA Platform API, NAVER Maps API, Papago API, and NAVER login for developers. In addition, the company is involved in the manufacture of cosmetics; electronic financial business; film and audio content production and distribution; investment business; and character and doll wholesale and retail activities. Further, it engages in the provision of cloud service management, business support, workforce supply, and employee dispatch; groupware development and service; exhibition and performance planning business; global business support; software development and distribution; IT infrastructure operations; customer center operations; and comics publishing. The company was formerly known as NHN Corporation. NAVER Corporation was founded in 1999 and is headquartered in Seongnam-si, South Korea.

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.