Marchex (NASDAQ:MCHX) and Sify Technologies (NASDAQ:SIFY) Financial Analysis

Marchex (NASDAQ:MCHX) and Sify Technologies (NASDAQ:SIFY) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, profitability, risk and earnings.

Valuation & Earnings

This table compares Marchex and Sify Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marchex	$47.53 million	1.65	-$4.95 million	($0.11)	-16.14
Sify Technologies	$41.19 billion	0.02	-$9.17 million	N/A	N/A

Marchex has higher earnings, but lower revenue than Sify Technologies.

Analyst Ratings

This is a summary of recent ratings and target prices for Marchex and Sify Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marchex	1	0	0	1	2.50
Sify Technologies	1	0	0	0	1.00

Profitability

This table compares Marchex and Sify Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marchex	-9.76%	-12.76%	-9.78%
Sify Technologies	-3.61%	-22.23%	-5.38%

Volatility and Risk

Marchex has a beta of 1.99, meaning that its share price is 99% more volatile than the S&P 500. Comparatively, Sify Technologies has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.

Institutional and Insider Ownership

73.5% of Marchex shares are held by institutional investors. Comparatively, 0.6% of Sify Technologies shares are held by institutional investors. 21.7% of Marchex shares are held by insiders. Comparatively, 77.0% of Sify Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Marchex pays an annual dividend of $0.08 per share and has a dividend yield of 4.5%. Sify Technologies pays an annual dividend of $0.01 per share and has a dividend yield of 0.1%. Marchex pays out -72.7% of its earnings in the form of a dividend.

Summary

Marchex beats Sify Technologies on 9 of the 13 factors compared between the two stocks.

About Marchex

Marchex, Inc., a conversation intelligence company, provides conversational analytics and related solutions in the United States, Canada, and internationally. Its products include Marketing Edge that identifies which campaigns and channels are driving inbound conversations, evaluates what happens during those conversations, and closes the sales loop by connecting converted sales to marketing driven leads; Sonar Business Text Messaging, an artificial intelligence (AI) empowered intelligent workflow enabled mobile messaging solution that enables operations, sales, and marketing teams to communicate personally with field staff, prospects, and customers; Marchex Platform Services, a robust API-based conversation intelligence product that allows executives, sales, customer engagement, and marketing teams to apply Marchex AI to most any calls, regardless of communication platform, in order to identify actionable insights from conversations with their customers; Spotlight, an AI conversation analytics product for multi-location businesses; and Engage, a solution that provides locations with applications to enhance their overall performance. The company was incorporated in 2003 and is headquartered in Seattle, Washington.

About Sify Technologies

Sify Technologies Limited offers ICT solutions and services in India and internationally. It operates through Network Centric Services, Data Center Services, and Digital Services segments. The company offers internet, internet protocol, multi-protocol label switching, virtual private network, SDWAN, managed Wi-Fi, internet of things, wholesale and retail voice, dedicated internet access, and proactive monitoring and management of the network and devices. It provides co-location services; and managed hosting services, such as storage, back-up management, performance monitoring, infrastructure monitoring and management, network availability, server load balancing, managed shared firewall, web server log reporting, and remote and smart hands services. In addition, it offers managed network services; EDGE services; cloud and managed services, including infrastructure as a service, platform as a service, virtual private data center, computing services, IT platform, backup and recovery solution, and content delivery network; remote and onsite infrastructure managed services; and managed security services. Further, the company provides technology integration services; application integration services, which includes talent management, supply chain management, web portal solutions content services, portal development and maintenance, eLearning, digital signature, SAP, Microsoft, Oracle services. The company was formerly known as Sify Limited and changed its name to Sify Technologies Limited in October 2007. Sify Technologies Limited was incorporated in 1995 and is headquartered in Chennai, India. Sify Technologies Limited is a subsidiary of Ramanand Core Investment Company Private Limited.