CyberAgent (OTCMKTS:CYGIY) and Rakuten (OTCMKTS:RKUNY) Head to Head Comparison

CyberAgent (OTCMKTS:CYGIY) and Rakuten (OTCMKTS:RKUNY) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Volatility & Risk

CyberAgent has a beta of 0.32, indicating that its stock price is 68% less volatile than the S&P 500. Comparatively, Rakuten has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.

Profitability

This table compares CyberAgent and Rakuten’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CyberAgent	4.60%	18.41%	9.33%
Rakuten	-4.83%	-9.99%	-0.44%

Analyst Ratings

This is a breakdown of current ratings for CyberAgent and Rakuten, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CyberAgent	0	0	0	0	0.00
Rakuten	0	1	0	1	3.00

Dividends

CyberAgent pays an annual dividend of $0.03 per share and has a dividend yield of 0.8%. Rakuten pays an annual dividend of $0.02 per share and has a dividend yield of 0.4%. CyberAgent pays out 11.1% of its earnings in the form of a dividend. Rakuten pays out -5.4% 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.

Earnings and Valuation

This table compares CyberAgent and Rakuten”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CyberAgent	$5.86 billion	0.67	$212.18 million	$0.27	14.26
Rakuten	$16.70 billion	0.65	-$1.19 billion	($0.37)	-13.46

CyberAgent has higher earnings, but lower revenue than Rakuten. Rakuten is trading at a lower price-to-earnings ratio than CyberAgent, indicating that it is currently the more affordable of the two stocks.

Summary

CyberAgent beats Rakuten on 8 of the 13 factors compared between the two stocks.

About CyberAgent

CyberAgent, Inc. engages in the media, internet advertising, game, and investment development businesses primarily in Japan. The company operates Ameba, a blog service; Tapple for online dating; AWA, a music streaming service; and WinTicket for online betting. It also offers internet advertising agency and ad technology services; and smartphone games. In addition, the company operates a programming school for kids and provides application and reward points exchange platform services; artificial intelligence services; and digital transformation services. CyberAgent, Inc. was incorporated in 1998 and is headquartered in Tokyo, Japan.

About Rakuten

Rakuten Group, Inc. provides services in e-commerce, fintech, digital content, and communications to various users in Japan and internationally. The company operates through three segments: Internet Services, FinTech, and Mobile. The Internet Services segment provides range of e-commerce sites, such as Rakuten Ichiba, an Internet shopping mall, online cash-back sites, travel booking sites, portal sites, and digital content sites. It also offers messaging services and sells advertising; and manages professional sport teams. The FinTech segment offers financial services over the internet related to banking and securities, credit cards, life insurance, general insurance, electronic payment business, crypto asset (virtual currency) spot transaction, etc. The Mobile segment provides communication services and technology, electricity supply, and digital content site services. The company was formerly known as Rakuten, Inc. and changed its name to Rakuten Group, Inc. in April 2021. Rakuten Group, Inc. was incorporated in 1997 and is headquartered in Setagaya, Japan.