Head-To-Head Review: Grindr (NYSE:GRND) and Internet Initiative Japan (OTCMKTS:IIJIY)

Grindr (NYSE:GRND) and Internet Initiative Japan (OTCMKTS:IIJIY) are both mid-cap communication services companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, earnings, analyst recommendations, valuation and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Grindr	10.86%	712.36%	17.56%
Internet Initiative Japan	6.34%	15.49%	7.03%

Insider & Institutional Ownership

7.2% of Grindr shares are owned by institutional investors. 60.9% of Grindr shares are owned by company insiders. Comparatively, 6.7% of Internet Initiative Japan shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Grindr and Internet Initiative Japan”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grindr	$509.82 million	4.57	$94.75 million	$0.30	44.72
Internet Initiative Japan	$2.29 billion	1.90	$159.64 million	$1.82	26.10

Internet Initiative Japan has higher revenue and earnings than Grindr. Internet Initiative Japan is trading at a lower price-to-earnings ratio than Grindr, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations for Grindr and Internet Initiative Japan, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grindr	0	1	6	0	2.86
Internet Initiative Japan	0	1	0	0	2.00

Grindr currently has a consensus price target of $20.20, suggesting a potential upside of 50.56%. Given Grindr’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Grindr is more favorable than Internet Initiative Japan.

Volatility and Risk

Grindr has a beta of 0.23, indicating that its share price is 77% less volatile than the S&P 500. Comparatively, Internet Initiative Japan has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500.

Summary

Grindr beats Internet Initiative Japan on 10 of the 14 factors compared between the two stocks.

About Grindr

Grindr Inc. operates social network and dating application for the lesbian, gay, bisexual, transgender, and queer (LGBTQ) communities worldwide. Its platform enables LGBTQ people to find and engage with each other, share content and experiences, and express themselves. The company offers ad-supported service and a premium subscription version. Grindr Inc. was founded in 2009 and is headquartered in West Hollywood, California.

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.