8X8 (EGHT) and Its Competitors Critical Contrast

8X8 (NASDAQ:EGHT – Get Rating) is one of 151 public companies in the “Data processing & preparation” industry, but how does it contrast to its rivals? We will compare 8X8 to related companies based on the strength of its institutional ownership, risk, valuation, profitability, analyst recommendations, dividends and earnings.

Earnings and Valuation

This table compares 8X8 and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
8X8	$638.13 million	-$175.38 million	-5.40
8X8 Competitors	$893.15 million	-$42.72 million	-8.10

8X8’s rivals have higher revenue and earnings than 8X8. 8X8 is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Insider & Institutional Ownership

94.2% of 8X8 shares are held by institutional investors. Comparatively, 41.4% of shares of all “Data processing & preparation” companies are held by institutional investors. 1.3% of 8X8 shares are held by company insiders. Comparatively, 19.1% of shares of all “Data processing & preparation” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

8X8 has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500. Comparatively, 8X8’s rivals have a beta of 1.42, indicating that their average share price is 42% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for 8X8 and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
8X8	0	1	0	0	2.00
8X8 Competitors	490	2951	4998	72	2.55

As a group, “Data processing & preparation” companies have a potential upside of 40.10%. Given 8X8’s rivals stronger consensus rating and higher possible upside, analysts plainly believe 8X8 has less favorable growth aspects than its rivals.

Profitability

This table compares 8X8 and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
8X8	-14.75%	-57.21%	-8.04%
8X8 Competitors	-127.22%	-1,644.55%	-18.71%

Summary

8X8 rivals beat 8X8 on 8 of the 13 factors compared.

About 8X8

(Get Rating)

8×8, Inc. engages in the provision of enterprise communication solutions. It offers solutions to the business services, education, financial services, government, healthcare, and manufacturing industries. The company was founded in February 1987 and is headquartered in Campbell, CA.