Critical Survey: Red Hat (RHT) vs. Sify Technologies (SIFY)

Red Hat (NYSE:RHT) and Sify Technologies (NASDAQ:SIFY) 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 & Volatility

Red Hat has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500. Comparatively, Sify Technologies has a beta of 1.63, meaning that its stock price is 63% more volatile than the S&P 500.

Insider & Institutional Ownership

95.2% of Red Hat shares are held by institutional investors. Comparatively, 5.2% of Sify Technologies shares are held by institutional investors. 0.6% of Red Hat shares are held by insiders. Comparatively, 77.0% of Sify Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for Red Hat and Sify Technologies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Red Hat 1 10 18 0 2.59
Sify Technologies 0 0 0 0 N/A

Red Hat currently has a consensus price target of $155.25, indicating a potential upside of 14.52%. Sify Technologies has a consensus price target of $3.00, indicating a potential upside of 86.34%. Given Sify Technologies’ higher possible upside, analysts plainly believe Sify Technologies is more favorable than Red Hat.

Dividends

Sify Technologies pays an annual dividend of $0.01 per share and has a dividend yield of 0.6%. Red Hat does not pay a dividend.

Valuation and Earnings

This table compares Red Hat and Sify Technologies’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Red Hat $2.92 billion 8.23 $258.80 million $2.30 58.94
Sify Technologies $318.04 million 0.20 $14.19 million N/A N/A

Red Hat has higher revenue and earnings than Sify Technologies.

Profitability

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

Net Margins Return on Equity Return on Assets
Red Hat 9.15% 31.80% 8.85%
Sify Technologies N/A N/A N/A

Summary

Red Hat beats Sify Technologies on 8 of the 12 factors compared between the two stocks.

Red Hat Company Profile

Red Hat, Inc. provides open source software solutions to develop and offer operating system, virtualization, management, middleware, cloud, mobile, and storage technologies to various enterprises worldwide. It offers infrastructure-related solutions, such as Red Hat Enterprise Linux, an operating system platform that runs on hardware for use in hybrid cloud environments; Red Hat Satellite, a system management offering that helps to deploy, scale, and manage in hybrid cloud environments; and Red Hat Enterprise Virtualization, a software solution that allows customers to utilize and manage a common hardware infrastructure to run multiple operating systems and applications. The company offers application development-related and other technology solutions, such as Red Hat JBoss Middleware, a solution for developing, deploying, and managing applications; integrating applications, data, and devices; and automating business processes in hybrid cloud environments; The company's application development-related and other technology solutions also includes Red Hat cloud offerings, a software solution that enables customers to build and manage various cloud computing environments; Red Hat Mobile, a software development platform that enables customers to develop, integrate, deploy, and manage mobile applications for enterprises; and Red Hat Storage, a software solution that enables customers to manage large, unstructured, or semi-structured data in hybrid cloud environments. It also provides consulting, support, and training services; and realtime operating system, distributed computing, directory services, and user authentication. Red Hat, Inc. has collaboration with Juniper Networks Expand to provide a unified solution for enterprises designed to manage and run applications and services. The company was formerly known as Red Hat Software, Inc. and changed its name to Red Hat, Inc. in June 1999. Red Hat, Inc. was founded in 1993 and is headquartered in Raleigh, North Carolina.

Sify Technologies Company Profile

Sify Technologies Limited provides integrated ICT solutions and services in India and internationally. The company operates in five segments: Telecom Services, Data Center Services, Cloud and Managed Services, Technology Integration Services, and Applications Integration Services. The Telecom Services segment offers Internet protocol based virtual private network services, including intranets, extranets, and remote access applications; and last mile connectivity services. The Data Center Services segment provides co-location, regular backup, server load balancing, and remote backup solutions; messaging, shared hosting, network, and security services; storage and virtualization services; and managed voice services to resident enterprises. The Cloud and Managed Services segment offers on-demand hosting services; and remote and onsite infrastructure management services that manages and supports customer operating systems, applications, and database layers, as well as utility-based on-demand storage service that manages the lifecycle of enterprise information. The Technology Integration Services segment provides data center build, network integration, information security, end user computing, and collaborative tools and solutions. The Applications Integration Services segment offers a range of Web-applications; and operates online portals, including sify.com and samachar.com, which acts as principal entry points and gateway for accessing the Internet, as well as related content sites. Sify Technologies Limited also provides Website design, development, content management, online assessment tools, and search engine optimization services; messaging and collaboration services and solutions; online testing engine and network management services; and online exam engine solutions. The company was formerly known as Sify Limited and changed its name to Sify Technologies Limited in October 2007. The company was founded in 1995 and is headquartered in Chennai, India.

Receive News & Ratings for Red Hat Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Red Hat and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply