Analyzing 8×8 (EGHT) and Telefonica SA (TEF)

Telefonica SA (NYSE: TEF) and 8×8 (NASDAQ:EGHT) are both utilities companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitabiliy, dividends, earnings and analyst recommendations.

Valuation & Earnings

This table compares Telefonica SA and 8×8’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Telefonica SA $59.92 billion 0.90 $18.65 billion $0.52 20.39
8×8 $253.39 million 5.41 $3.18 million ($0.05) -299.00

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Telefonica SA and 8×8, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Telefonica SA 2 4 9 0 2.47
8×8 0 3 6 0 2.67

Telefonica SA currently has a consensus price target of $10.66, suggesting a potential upside of 0.60%. 8×8 has a consensus price target of $17.63, suggesting a potential upside of 17.89%. Given 8×8’s stronger consensus rating and higher probable upside, analysts clearly believe 8×8 is more favorable than Telefonica SA.

Profitability

This table compares Telefonica SA and 8×8’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Telefonica SA 4.96% 27.92% 6.40%
8×8 -1.88% 2.26% 1.97%

Institutional & Insider Ownership

0.9% of Telefonica SA shares are owned by institutional investors. Comparatively, 68.2% of 8×8 shares are owned by institutional investors. 0.0% of Telefonica SA shares are owned by company insiders. Comparatively, 4.0% of 8×8 shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Telefonica SA has a beta of 1.4, suggesting that its stock price is 40% more volatile than the S&P 500. Comparatively, 8×8 has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500.

Dividends

Telefonica SA pays an annual dividend of $0.50 per share and has a dividend yield of 4.7%. 8×8 does not pay a dividend. Telefonica SA pays out 96.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Telefonica SA beats 8×8 on 9 of the 15 factors compared between the two stocks.

Telefonica SA Company Profile

Telefonica, S.A. is an integrated and diversified telecommunications group operating in Europe and Latin America. The Company’s services and products include Mobile business, Fixed-line telephony business and Digital services. Its segments include Telefonica Spain, Telefonica Brazil, Telefonica Germany, Telefonica United Kingdom and Telefonica Hispanoamerica (formed by the Company’s operators in Argentina, Chile, Peru, Colombia, Mexico, Venezuela and Central America, Ecuador and Uruguay). These segments are engaged in activities relating to wireline, wireless, cable, data, Internet and television (TV) businesses and other digital services in accordance with each location. It offers a range of mobile and related services and products to personal and business customers. It offers traditional fixed telecommunication services, Internet and broadband multimedia services and data and business-solutions services. It offers a range of digital services, such as Internet of Things (IoT).

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.

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