8×8 (NASDAQ: EGHT) and BT Group PLC (NYSE:BT) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Profitability

This table compares 8×8 and BT Group PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
8×8 -2.44% 1.38% 1.20%
BT Group PLC 7.14% 39.24% 6.77%

Analyst Recommendations

This is a summary of recent ratings and price targets for 8×8 and BT Group PLC, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
8×8 0 4 6 0 2.60
BT Group PLC 3 7 8 0 2.28

8×8 presently has a consensus price target of $17.44, suggesting a potential upside of 23.72%. BT Group PLC has a consensus price target of $354.12, suggesting a potential upside of 1,785.61%. Given BT Group PLC’s higher probable upside, analysts plainly believe BT Group PLC is more favorable than 8×8.

Valuation and Earnings

This table compares 8×8 and BT Group PLC’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
8×8 $262.45 million 4.93 -$391,000.00 ($0.06) -235.00
BT Group PLC $31.83 billion 1.17 $9.05 billion $1.04 18.06

BT Group PLC has higher revenue and earnings than 8×8. 8×8 is trading at a lower price-to-earnings ratio than BT Group PLC, indicating that it is currently the more affordable of the two stocks.

Dividends

BT Group PLC pays an annual dividend of $0.95 per share and has a dividend yield of 5.1%. 8×8 does not pay a dividend. BT Group PLC pays out 91.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 8×8 has raised its dividend for 5 consecutive years.

Risk and Volatility

8×8 has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500. Comparatively, BT Group PLC has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500.

Institutional and Insider Ownership

69.5% of 8×8 shares are owned by institutional investors. Comparatively, 1.0% of BT Group PLC shares are owned by institutional investors. 4.4% of 8×8 shares are owned by company 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.

Summary

BT Group PLC beats 8×8 on 10 of the 16 factors compared between the two stocks.

8×8 Company Profile

8×8, Inc. provides cloud-based, enterprise-class software solutions. The Company’s solutions are delivered through Software as a Service (SaaS) business model. Its segments include Americas and Europe. Its software platform brings together cloud, mobile, collaboration, video and data science technologies. Through a combination of open application program interface (API) and pre-built integrations, its solutions leverage critical customer context from internal data systems and customer relationship management (CRM) systems. Its software product, branded as 8×8 Virtual Office, delivers voice as a service across the world. 8×8 Virtual Office enables a customer to use a single business phone number to place and receive calls from any supported device. It provides software to enable a multi-channel contact center under the 8×8 Virtual Contact Center brand. Its Virtual Office Meetings software solution is a tool for teams within the enterprise to meet and collaborate on a shared project.

BT Group PLC Company Profile

BT Group plc is a communications services company. The Company is engaged in selling fixed-voice services, broadband, mobile and television products and services, as well as managed networked information technology (IT) solutions and cyber security protection. Its segments include Consumer, which provides fixed-voice, broadband, TV and mobile services; EE, which is a mobile network operator in the United Kingdom and provides mobile and fixed communications services to consumers; Business and Public Sector, which provides communications and IT services to businesses and the public sector in the United Kingdom and the Republic of Ireland (RoI) ;Global Services, which provides managed networked IT services to corporate customers; Wholesale and Ventures, which provides fixed and mobile services to communications providers (CPs); and Openreach, which provides copper and fiber connections between its exchanges and homes and businesses.

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